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Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank Note: Do not round answers - enter using two decimal places, when needed. Bank reconciliation Journal entries Date July 31 Cash in Bank 31 Cash in Bank 31 31 GENERAL JOURNAL Description Miscellaneous Expense To record proceeds of note. To correct recording of check. To record service charge. + $ ♦ Please answer all parts of the question. + + + + Cash in Bank To reclassify NSF check as an account receivable. Debit 0 $ 0 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0 0 0 0

Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank Note: Do not round answers - enter using two decimal places, when needed. Bank reconciliation Journal entries Date July 31 Cash in Bank 31 Cash in Bank 31 31 GENERAL JOURNAL Description Miscellaneous Expense To record proceeds of note. To correct recording of check. To record service charge. + $ ♦ Please answer all parts of the question. + + + + Cash in Bank To reclassify NSF check as an account receivable. Debit 0 $ 0 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0 0 0 0

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 7.3BE
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Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank re Note: Do not round answers - enter using two decimal places, when needed. Journal entries Bank reconciliation Date July 31 Cash in Bank 31 Cash in Bank 31 31 GENERAL JOURNAL Description Miscellaneous Expense To record proceeds of note. To correct recording of check. To record service charge. → ♦ Please answer all parts of the question. ◆ → + → ◆ ◆ Cash in Bank To reclassify NSF check as an account receivable. $ Debit 0 0 0 0 0 0 0 0 0 $ Credit 0 0 0 0 0 0 0 0 0
Transcribed Image Text:Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank re Note: Do not round answers - enter using two decimal places, when needed. Journal entries Bank reconciliation Date July 31 Cash in Bank 31 Cash in Bank 31 31 GENERAL JOURNAL Description Miscellaneous Expense To record proceeds of note. To correct recording of check. To record service charge. → ♦ Please answer all parts of the question. ◆ → + → ◆ ◆ Cash in Bank To reclassify NSF check as an account receivable. $ Debit 0 0 0 0 0 0 0 0 0 $ Credit 0 0 0 0 0 0 0 0 0
Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of $10,103.24. On that date, the bank statement indicated a balance of $12,737.97. A comparison of returned checks and bank advices revealed the following: 1. Deposits in transit July 31 amounted to $5,007.73. 2. Outstanding checks July 31 totaled $2,045.06. 3. The bank erroneously charged a $455.00 check of Solomon Company against the Sullivan bank account. 4. A bank service charge has not yet been recorded by Sullivan Company of $25.00. 5. Sullivan neglected to record $5,600.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $5,600.00 as a deposit. 6. Included with the returned checks is a memo indicating that J. Martin's check for $896.00 had been returned NSF. Martin, a customer, had sent the check to pay an account of $924.00 less a $28 discount. 7. Sullivan Company recorded a $152.60 payment for repairs as $1,526.00 Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. Note: Do not round answers - enter using two decimal places, when needed. Bank reconciliation Journal entries Ending balance from bank statement Add: Deposits not credited by bank Add: Bank error- Solomon Company check ◆ → charged against Sullivan Company's account SULLIVAN COMPANY Bank Reconciliation July 31 $ 0 Balance from general ledger 0 Add: 0 Check recorc + 0 0 $ 0 0 0
Transcribed Image Text:Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of $10,103.24. On that date, the bank statement indicated a balance of $12,737.97. A comparison of returned checks and bank advices revealed the following: 1. Deposits in transit July 31 amounted to $5,007.73. 2. Outstanding checks July 31 totaled $2,045.06. 3. The bank erroneously charged a $455.00 check of Solomon Company against the Sullivan bank account. 4. A bank service charge has not yet been recorded by Sullivan Company of $25.00. 5. Sullivan neglected to record $5,600.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $5,600.00 as a deposit. 6. Included with the returned checks is a memo indicating that J. Martin's check for $896.00 had been returned NSF. Martin, a customer, had sent the check to pay an account of $924.00 less a $28 discount. 7. Sullivan Company recorded a $152.60 payment for repairs as $1,526.00 Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. Note: Do not round answers - enter using two decimal places, when needed. Bank reconciliation Journal entries Ending balance from bank statement Add: Deposits not credited by bank Add: Bank error- Solomon Company check ◆ → charged against Sullivan Company's account SULLIVAN COMPANY Bank Reconciliation July 31 $ 0 Balance from general ledger 0 Add: 0 Check recorc + 0 0 $ 0 0 0
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