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    Activity 03 Ch7

    Uploaded by

    Darlene Bacatan Amancio
    The document provides information about Crane Video Company's cash balances according to its bank statement and accounting records as of July 31. It includes the cash balance per bank of $7,263, deposits in transit of $1,300, outstanding checks of $591, and bank charges of $28 that were not recorded. It also notes a $700 note collected by the bank plus $36 interest but with a $20 fee, which were not recorded by Crane. The instructions are to prepare a bank reconciliation as of July 31 and journalize the necessary adjusting entries on Crane's books.

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    Activity 03 Ch7

    Uploaded by

    Darlene Bacatan Amancio
    51 views1 page
    The document provides information about Crane Video Company's cash balances according to its bank statement and accounting records as of July 31. It includes the cash balance per bank of $7,263, deposits in transit of $1,300, outstanding checks of $591, and bank charges of $28 that were not recorded. It also notes a $700 note collected by the bank plus $36 interest but with a $20 fee, which were not recorded by Crane. The instructions are to prepare a bank reconciliation as of July 31 and journalize the necessary adjusting entries on Crane's books.

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    financial accounting

    Original Title

    Activity_03_Ch7

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    The document provides information about Crane Video Company's cash balances according to its bank statement and accounting records as of July 31. It includes the cash balance per bank of $7,263, deposits in transit of $1,300, outstanding checks of $591, and bank charges of $28 that were not recorded. It also notes a $700 note collected by the bank plus $36 interest but with a $20 fee, which were not recorded by Crane. The instructions are to prepare a bank reconciliation as of July 31 and journalize the necessary adjusting entries on Crane's books.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    51 views1 page

    Activity 03 Ch7

    Uploaded by

    Darlene Bacatan Amancio
    The document provides information about Crane Video Company's cash balances according to its bank statement and accounting records as of July 31. It includes the cash balance per bank of $7,263, deposits in transit of $1,300, outstanding checks of $591, and bank charges of $28 that were not recorded. It also notes a $700 note collected by the bank plus $36 interest but with a $20 fee, which were not recorded by Crane. The instructions are to prepare a bank reconciliation as of July 31 and journalize the necessary adjusting entries on Crane's books.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
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    Financial Accounting

    Activity No. 3

    Prepare bank reconciliation and adjusting entries


    The following information pertains to Crane Video Company.
    1 Cash balance per bank, July 31, $7,263.
    2 July bank service charge not recorded by the depositor $28.
    3 Cash balance per books, July 31, $7,284.
    4 Deposits in transit, July 31, $1,300.
    5 Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The
    collection has not been recorded by Crane, and no interest has been accrued.
    6 Outstanding checks, July 31, $591.

    Instructions
    (a) Prepare a bank reconciliation at July 31.
    (b) Journalize the adjusting entries at July 31 on the books of Crane Video Company.

    (a) CRANE VIDEO COMPANY


    Bank Reconciliation
    July 31
    Cash balance per bank statement
    Add: Deposit in transit

    Less: outstanding checks


    Adjusted cash balance per bank $0

    Cash balance per books


    Add: Credit Memo

    Less: Debit memos


    Adjusted cash balance per books $0

    (b) Jul 31 Cash


    Bank Charges
    Notes Receiable
    Interst Income

    31 Bank Charges
    Cash

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