The following information pertains to Gilmore Company.
1. Cash balance per bank, July 31, $7,489.
2. July bank service charge not recorded by the depositor $45.
3. Cash balance per books, July 31, $7,441.
4. Deposits in transit, July 31, $1,861.
5. Note for $1,161 collected for Gilmore in July by the bank, plus interest $36 less fee $20. The collection has not been recorded by Gilmore, and no interest has been accrued.
6. Outstanding checks, July 31, $777.
(a) Complete the bank reconciliation at July 31, 2010 below:
GILMORE COMPANY
Bank reconciliation
July 31, 2010
Cash balance per bank statement $
Add: Adjusted cash balance per bankAdjusted cash balance per booksCollection of note receivableBank service chargeDeposits in transitOutstanding checks
Less: Collection of note receivableDeposits in transitOutstanding checksAdjusted cash balance per bankBank service chargeAdjusted cash balance per books
Adjusted cash balance per bankDeposits in transitCollection of note receivableBank service chargeAdjusted cash balance per booksOutstanding checks $
Cash balance per books $
Add: Deposits in transitBank service chargeAdjusted cash balance per booksAdjusted cash balance per bankOutstanding checksCollection of note receivable
Less: Adjusted cash balance per booksCollection of note receivableOutstanding checksDeposits in transitAdjusted cash balance per bankBank service charge
Outstanding checksDeposits in transitAdjusted cash balance per booksAdjusted cash balance per bankCollection of note receivableBank service charge $
(b) Journalize the adjusting entries at July 31 on the books of Gilmore Company. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Date Account/Description Debit Credit
July 31 Interest revenueMiscellaneous expenseNotes receivableAccounts receivableCash
Interest revenueAccounts receivableNotes receivableCashMiscellaneous expense
Accounts receivableCashMiscellaneous expenseInterest revenueNotes receivable
Accounts receivableInterest revenueNotes receivableCashMiscellaneous expense
(To record the collect of notes receivable)
July 31 Interest revenueAccounts receivableCashMiscellaneous expenseNotes receivable
Accounts receivableMiscellaneous expenseCashNotes receivableInterest revenue
(To record bank service charges)