The following information is available to reconcile Clark Company’s book balance of cash with its
bank statement cash balance as of July 31, 2005:
a. After all posting is complete on July 31, the company’s Cash account has a $26,193 debit balance,
but its July bank statement shows a $28,020 cash balance.
b. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank
reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is
not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, both written in July, are not
among the canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries in the accounting records,
it is found that Check No. 3056 for July rent was correctly written and drawn for $1,250 but was
erroneously entered in the accounting records as $1,230.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $
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