E7-24Solutions - $3,100 Checks cleared by bank in July $...

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*EXERCISE 7-24 (15–20 minutes) (a) KIPLING COMPANY Bank Reconciliation July 31 Balance per bank statement, July 31 $ 8,650 Add: Deposits in transit 2,850 a Deduct: Outstanding checks (1,100 ) b Correct cash balance, July 31 $10,400 Balance per books, July 31 $ 9,250 Add: Collection of note 1,500 Less: Bank service charge $ 15 NSF check 335 (350 ) Corrected cash balance, July 31 $10,400 a Computation of deposits in transit Deposits per books $5,810 Deposits per bank in July $ 4,500 Less deposits in transit (June) (1,540 ) Deposits mailed and received in July (2,960 )
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Deposits in transit, July 31 $2,850 b Computation of outstanding checks Checks written per books
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Unformatted text preview: $3,100 Checks cleared by bank in July $ 4,000 Less outstanding checks (June)* (2,000 ) Checks written and cleared in July (2,000 ) Outstanding checks, July 31 $1,100 *Assumed to clear bank in July *EXERCISE 7-24 (Continued) (b) Cash. ..................................................................... ............................................................................... 1,150 Office ExpensesBank Charges. ...................... 15 Accounts Receivable. ......................................... 335 Notes Receivable. ....................................... 1,500...
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This note was uploaded on 02/14/2011 for the course ACCT 251 taught by Professor Bouker during the Spring '11 term at Bergen Community College.

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E7-24Solutions - $3,100 Checks cleared by bank in July $...

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