Bank Reconciliation The following information is extracted from the bank statement and the accounting records of the Sun Corporation for the month of July 2007:
|
1. Cash balance from books, July 31 |
$1,967.35 |
|
2. Cash balance from bank, July 31 |
1,980.20 |
|
3. NSF check returned by bank with bank statement |
81 |
|
4. Note collected by bank on July 31 |
190 |
|
5. Interest on preceding note |
5.5 |
|
6. Bank service charge for July |
4.4 |
|
7. Outstanding checks at end of July |
150 |
|
8. Deposit in transit at end of July |
247.25 |
Required
1. Prepare a bank reconciliation for the Sun Corporation for July 31, 2007.
2. Prepare the journal entries necessary to adjust Sun’s books on July 31, 2007.