Reference no: EM132708797

You have prepared the closing process for the month ended July 31 for the year. The ledger balance of ADMS Inc. shows Cash $68920, and the bank statement balance on July 31 shows $49040. You are preparing the bank reconciliation statement with the following details:

1. ADMS Inc issued Cheque #514 : $4380 and Cheque #542 : $9880 to pay their suppliers but it is still in the tray of outgoing mail.
2. Cheque 525 amounting $4860 is cleared from the bank account correctly. You found that you have recorded the transaction on the accounting records for $2460. 
3. You were very busy on July 31. You deposited the $9715 to the bank after hours. It takes 1 business day for the deposit to show up in the bank statement.
4. The bank statement shows $4815 of interest earned and $28000 in charges (payments) collected from the credit cards. All these transactions have not been recorded by you.
5. You realized in the bank statement that a $8200 cheque bounced. It was a payment received from DEY Company.
6. Upon review of the bank statement, an error is uncovered. A cheque is removed from ADMS Inc bank account amounting $1640. This amount should have been removed from the account of another customer of the bank. You have called the bank and the bank admitted that there was an error.
7. Bank service charges for the month are $80. You have not recorded this expense yet.

Required:

Problem 1: Calculate the reconciled cash balance on July 31 starting with the "Bank Statement Balance" on July 31.