The following information is extracted from the bank statement and the accounting records of Sun Corporation for the month of July, 2019: Cash balance from books, July 31 $2,000.35 Cash balance from bank, July 31 2,021.20 NSF check returned by bank with bank statement 81.00 Note collected by bank on July 31 190.00 Interest on preceding note 5.50 Bank service charge for July 3.40 Outstanding checks at end of July 150.00 Deposit in transit at the end of July 240.25 Required: 1. Prepare a bank reconciliation for Sun on July 31, 2019. 2. Prepare the journal entries necessary to adjust Sun’s books on July 31, 2019. Prepare a bank reconciliation for Sun on July 31, 2019. Bank Reconciliation Instructions Sun Corporation Bank Reconciliation July 31, 2019 1 Balance from bank statement 2 Add: 3 4 5 Deduct: 6 7 Adjusted cash balance 8 9 Balance from company records 10 Add: 11 12 13 14 15 Deduct: 16 17 18 19 Adjusted cash balance Prepare the journal entries necessary to adjust Sun’s books on July 31, 2019. General Journal Instructions PAGE 8 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5 6

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5PA

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Question

The following information is extracted from the bank statement and the accounting records of Sun Corporation for the month of July, 2019:


Cash balance from books, July 31	$2,000.35
Cash balance from bank, July 31	2,021.20
NSF check returned by bank with bank statement	81.00
Note collected by bank on July 31	190.00
Interest on preceding note	5.50
Bank service charge for July	3.40
Outstanding checks at end of July	150.00
Deposit in transit at the end of July	240.25

Required:

1.	Prepare a bank reconciliation for Sun on July 31, 2019.
2.	Prepare the journal entries necessary to adjust Sun’s books on July 31, 2019.

Prepare a bank reconciliation for Sun on July 31, 2019.

Bank Reconciliation Instructions

Sun Corporation

Bank Reconciliation

July 31, 2019

1	Balance from bank statement
2	Add:
3
4
5	Deduct:
6
7	Adjusted cash balance
8
9	Balance from company records
10	Add:
11
12
13
14
15	Deduct:
16
17
18
19	Adjusted cash balance

Prepare the journal entries necessary to adjust Sun’s books on July 31, 2019.

General Journal Instructions

PAGE 8

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6

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