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Problem 1: The bank statement for Strivers, Inc. shows a balance of $9,410 on July 31, while the cash-in-bank account in Striver's books has a balance of $6,625 on this date, after all cash activity for the month July had been posted. Prepare a bank reconciliation based on the starting balances above, and the following additions and deductions: a) Checks outstanding, $3,113 b) Deposits still in transit, $1,733 c) Checking account service charges, $38. d) A note receivable was collected by the bank, $1,850 (this amount includes interest revenue of $50). e) A check marked 'NSF' for $425 was returned; the customer was supposedly paying Strivers on account. f) A check for $746 paid on account by Strivers, on July 15th had been incorrectly recorded in Strivers general journal as $764. Problem 2: Prepare the two journal entries that are required by the just completed reconciliation from Problem 1, above, for July 31.

Problem 1: The bank statement for Strivers, Inc. shows a balance of $9,410 on July 31, while the cash-in-bank account in Striver's books has a balance of $6,625 on this date, after all cash activity for the month July had been posted. Prepare a bank reconciliation based on the starting balances above, and the following additions and deductions: a) Checks outstanding, $3,113 b) Deposits still in transit, $1,733 c) Checking account service charges, $38. d) A note receivable was collected by the bank, $1,850 (this amount includes interest revenue of $50). e) A check marked 'NSF' for $425 was returned; the customer was supposedly paying Strivers on account. f) A check for $746 paid on account by Strivers, on July 15th had been incorrectly recorded in Strivers general journal as $764. Problem 2: Prepare the two journal entries that are required by the just completed reconciliation from Problem 1, above, for July 31.

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section5.2: Bank Reconciliation
Problem 1OYO
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Problem 1: The bank statement for Strivers, Inc. shows a balance of $9,410 on July 31, while the cash-in-bank account in Striver's books has a balance of $6,625 on this date, after all cash activity for the month July had been posted. Prepare a bank reconciliation based on the starting balances above, and the following additions and deductions: a) Checks outstanding, $3,113 b) Deposits still in transit, $1,733 c) Checking account service charges, $38. d) A note receivable was collected by the bank, $1,850 (this amount includes interest revenue of $50). e) A check marked 'NSF' for $425 was returned; the customer was supposedly paying Strivers on account. f) A check for $746 paid on account by Strivers, on July 15th had been incorrectly recorded in Strivers general journal as $764. Problem 2: Prepare the two journal entries that are required by the just completed reconciliation from Problem 1, above, for July 31.
Transcribed Image Text:Problem 1: The bank statement for Strivers, Inc. shows a balance of $9,410 on July 31, while the cash-in-bank account in Striver's books has a balance of $6,625 on this date, after all cash activity for the month July had been posted. Prepare a bank reconciliation based on the starting balances above, and the following additions and deductions: a) Checks outstanding, $3,113 b) Deposits still in transit, $1,733 c) Checking account service charges, $38. d) A note receivable was collected by the bank, $1,850 (this amount includes interest revenue of $50). e) A check marked 'NSF' for $425 was returned; the customer was supposedly paying Strivers on account. f) A check for $746 paid on account by Strivers, on July 15th had been incorrectly recorded in Strivers general journal as $764. Problem 2: Prepare the two journal entries that are required by the just completed reconciliation from Problem 1, above, for July 31.
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