Prepare the journal entries necessary to bring the company's book balance of cash into conformity?

Question

with the reconciled cash balance as of July 31 2005.

I have the first part of the assignment done I am just not sure what they are asking me to do here. I know they want me to Journalize, but in what way? I am really confused can you help?

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 $9,000

cash on a noninterest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder

to its account. Clark had not recorded this event before receiving the statement.

e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had

been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.

f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet

been recorded because no previous notification had been received.

g. Clark’s July 31 daily cash receipts of $10,152 were placed in the bank’s night depository on that

date, but do not appear on the July 31 bank statement.

Answer 1

I've sent the Excel file to you.

Answer 2

You say you have done the first part of this assignment.  The first part is the bank reconciliation.  I am going to assume you have done that.  

There are two steps to the bank reconciliation.  You start with the bank balance and then make adjustments to it the bank did not know.  For instance, checks outstanding and deposits in transit are the two reconciliation items most often posted to the bank balance in order to reconcile.

Then you take the book balance and reconcile it by looking at the bank statement and seeing what it is the company did not know.  Those would be things like the bank collecting on a note (letter d above), returned checks, bank fees, etc.

So if you have done that, you then post journal entries to get your books up to date.  What entries?  You don't post anything the bank didn't know.  You only post that which your company just found out from the bank.

For instance, the aforementioned part d.  The company received cash on a note.  How much cash?  It was $9,000 less a collection fee.  So your entry for that is - debit cash for $8,955, debit bank fees for $45 and credit the note receivable for $9,000.  This is new information to YOU, so it must be posted to your books via a journal entry.

Again, you only post things that you did not know until you got the bank statement.  So reconciling items on the book side of the reconciliation are the only things for which you will create journal entries.  Those are the things the bank knew that you didn't until you got the statement.  

If this answer doesn't quite work for you, let me know as an addition and I can try it another way.