Analysis of the bank data reveals that the credits consist

Assignment Help Accounting Basics

Reference no: EM13597770

Videosoft Company maintains a checking account at the Intelex Bank. At July 31, selected data from the general ledger account and the bank statement are as follows:

Cash in Bank
Per Books Per Bank
Balance, July 1 $17,600 $18,800
July receipts 82,000
July credits 80,470
July disbursements 76,900
July debits . 74,740
Balance, July 31 $22,700 $24,530

Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $1,470 for the collection of a $1,400 note plus interest revenue of $70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $40 for printing additional company checks.

You also discover the following errors involving July checks: (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320; (2) a salary check to an employee for $255 was recorded by the bank for $155.

The June 30 bank reconciliation contained only two reconciling items: deposits in transit $5,000 and outstanding checks of $6,200.
Instructions:

(a) Prepare a bank reconciliation at July 31.
(b) Journalize the adjusting entries to be made by Videosoft Company at July 31. Assume that the interest on the note has been accrued.

Reference no: EM13597770

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