Question:

Reconcile Clark Company's book Balance of Cash with Bank Stmnt cash balance as of July 31, 2005

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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.

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1 ANSWERS


  1. I've emailed the Excel file to the address you gave me.

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