On July 31, 2022, Crane Company had a cash balance per books of $6,245.00. The statement from Dakota State Bank on that date showed a balance of $7,795.80. A comparison of the bank statement with the Cash account revealed the following facts.1. The bank service charge for July was $16.00.2. The bank collected $1,625.00 from a customer for Crane Company through electronic funds transfer.3. The July 31 receipts of $1,307.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.4. Company check No. 2480 issued to L. Taylor, a creditor, for $284.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $245.00.5. Checks outstanding on July 31 totaled $1,965.10.6. On July 31, the bank statement showed an NSF charge of $680.00 for a check received by the company from W. Krueger, a customer, on account.  Prepare the necessary adjusting entries at July 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date.Account Titles and ExplanationDebitCreditJuly 31.enter an account title to record electronic funds transfer received by bankenter a debit amountenter a credit amount enter an account title to record electronic funds transfer received by bankenter a debit amountenter a credit amount (To record electronic funds transfer received by bank)  31.enter an account title To record NSF checkenter a debit amountenter a credit amount enter an account title To record NSF checkenter a debit amountenter a credit amount (To record NSF check)  31.enter an account title for the adjusting entry to correct error in recording checkenter a debit amountenter a credit amount enter an account title for the adjusting entry to correct error in recording checkenter a debit amountenter a credit amount (To correct error in recording check)  31.enter an account title to record bank service chargeenter a debit amountenter a credit amount enter an account title to record bank service chargeenter a debit amountenter a credit amount (To record bank service charge)

Question
Asked Nov 9, 2019
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On July 31, 2022, Crane Company had a cash balance per books of $6,245.00. The statement from Dakota State Bank on that date showed a balance of $7,795.80. A comparison of the bank statement with the Cash account revealed the following facts.

1.   The bank service charge for July was $16.00.
2.   The bank collected $1,625.00 from a customer for Crane Company through electronic funds transfer.
3.   The July 31 receipts of $1,307.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4.   Company check No. 2480 issued to L. Taylor, a creditor, for $284.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $245.00.
5.   Checks outstanding on July 31 totaled $1,965.10.
6.   On July 31, the bank statement showed an NSF charge of $680.00 for a check received by the company from W. Krueger, a customer, on account.

 

 

Prepare the necessary adjusting entries at July 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date.
Account Titles and Explanation
Debit
Credit
July 31.
enter an account title to record electronic funds transfer received by bank
enter a debit amount
enter a credit amount
 
enter an account title to record electronic funds transfer received by bank
enter a debit amount
enter a credit amount
  (To record electronic funds transfer received by bank)    
31.
enter an account title To record NSF check
enter a debit amount
enter a credit amount
 
enter an account title To record NSF check
enter a debit amount
enter a credit amount
 
(To record NSF check)
   
31.
enter an account title for the adjusting entry to correct error in recording check
enter a debit amount
enter a credit amount
 
enter an account title for the adjusting entry to correct error in recording check
enter a debit amount
enter a credit amount
  (To correct error in recording check)    
31.
enter an account title to record bank service charge
enter a debit amount
enter a credit amount
 
enter an account title to record bank service charge
enter a debit amount
enter a credit amount
 
(To record bank service charge)
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Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) a...

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