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Problem 7-3A On July 31, 2014, Redeker Company had a cash balance per books of $6,424. The statement from Nashota State Bank on that date showed a balance of $7,974.80. A comparison of the bank statement with the Cash account revealed the following facts.;1. The bank service charge for July was $19.;2. The bank collected a note receivable of $1,622 for Redeker Company on July 15, plus $36 of interest. The bank made a $16 charge for the collection. Redeker has not accrued any interest on the note.;3. The July 31 receipts of $1,321.30 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 T. Laird, a creditor, for $394.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $349.00.;5. Checks outstanding on July 31 totaled $1,991.10.;6.;On July 31, the bank statement showed an NSF charge of $697 for a check received by the company from K. Wagner, a customer, on account.;Prepare the bank reconciliation as of July 31.;REDEKER COMPANY;Bank Reconciliation;July 31, 2014;$;Add;Less;$;$;Add;Less: $;$;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.;(To record collection of note receivable by bank);31.;(To record NSF check);31.;(To correct error in recording check);31.;(To record bank service charge)


Paper#75543 | Written in 18-Jul-2015

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