Question

Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 31 the cash account had a balance of $6,105.42. The bank statement on July 31 reported a balance of $4,146.46. Upon comparing the bank statement to the books, the following items were found. a. A bank debit memo issued for an NSF check from a customer of $21.25. b. A bank credit memo issued for interest of $8.50 earned during the month. c. During the evening of July 31, a deposit of $1,948.25 was made, which is not shown on the bank statement. d. A bank debit memo issued for $18.50 for bank service charges. e. Checks for the amounts of $34.00, $17.85, and $93.25 were written during July but have not yet been received by the bank. f. The reconciliation from the previous month, June, showed outstanding checks of $260.80. One of these checks in the amount of $7.38 has not yet been received by the bank. g. After comparing the canceled checks to the bank statement, it was discovered that a check written for the amount of $18.90 was deducted as $19.80 by the bank. h. It was discovered that a check written to a creditor in the amount of $145.60 was recorded in the books as $14.56. Required: 1. Prepare a bank reconciliation as of July 31. 2. Prepare the necessary general journal entries from the bank reconciliation.

          Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 31 the cash account had a balance of $6,105.42. The bank statement on July 31 reported a balance of $4,146.46. Upon comparing the bank statement to the books, the following items were found.
a.
A bank debit memo issued for an NSF check from a customer of $21.25.
b.
A bank credit memo issued for interest of $8.50 earned during the month.
c.
During the evening of July 31, a deposit of $1,948.25 was made, which is not shown on the bank statement.
d.
A bank debit memo issued for $18.50 for bank service charges.
e.
Checks for the amounts of $34.00, $17.85, and $93.25 were written during July but have not yet been received by the bank.
f.
The reconciliation from the previous month, June, showed outstanding checks of $260.80. One of these checks in the amount of $7.38 has not yet been received by the bank.
g.
After comparing the canceled checks to the bank statement, it was discovered that a check written for the amount of $18.90 was deducted as $19.80 by the bank.
h.
It was discovered that a check written to a creditor in the amount of $145.60 was recorded in the books as $14.56.
Required:
1.
Prepare a bank reconciliation as of July 31.
2.
Prepare the necessary general journal entries from the bank reconciliation.

Added by Susana M.

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