Bank reconciliation and adjustments to the Cash account
The following information is available for River Bed Hotel for July 2010.
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Bolta Vista, NV 10001 State Bank Bank Statement |
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River Bed Hotel 10 Main Street Bolta Vista, NV 10001 |
Account number 12 4567 July 31, 2010 |
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Bolta Vista, NV 10001 |
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Account number |
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12 4567 |
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July 31, 2010 |
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Beginning balance 6/30/2010 |
$ 9,031 |
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Total deposits and other credits |
28,900 |
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Total checks and other debits |
23,902 |
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Ending balance 7/31/2010 |
14,029 |
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Checks and Debits |
Deposits and Credits |
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Check No. |
Amount |
Date |
Amount |
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2350 |
$3,761 |
July |
1 |
$1,102 |
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2351 |
1,643 |
July |
10 |
6,498 |
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2352 |
8,000 |
July |
15 |
4,929 |
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2354 |
2,894 |
July |
21 |
6,174 |
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2355 |
1,401 |
July |
26 |
5,963 |
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2357 |
6,187 |
July |
30 |
2,084 |
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DM |
16 |
CM |
2,150 |
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The following is a list of checks and deposits recorded on the books of the River Bed Hotel for July 2010.
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Date |
Check No. |
Amount of Check |
Date |
Amount of Deposit |
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July |
2 |
2351 |
$1,643 |
July |
8 |
$6,498 |
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July |
4 |
2352 |
8,000 |
July |
14 |
4,929 |
|
July |
10 |
2353 |
1,700 |
July |
21 |
6,174 |
|
July |
10 |
2354 |
2,894 |
July |
26 |
5,963 |
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July |
15 |
2355 |
1,401 |
July |
29 |
2,084 |
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July |
20 |
2356 |
950 |
July |
30 |
3,550 |
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July |
22 |
2357 |
6,187 |
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Other Information
1. Check no. 2350 was outstanding from June.
2. Credit memo was for collection of notes receivable.
3. All checks were paid at the correct amount.
4. Debit memo was for printed checks.
5. The June 30 bank reconciliation showed a deposit in transit of $1,102.
6. The unadjusted Cash account balance at July 31 was $12,795.
Required
a. Prepare the bank reconciliation for River Bed Hotel at the end of July.
b. Explain how the adjustments described above affect the cash account.