Reference no: EM13488766

The following information is available to reconcile Quill Co. book balance of cash with its bank statement cash balance as of July 31, 2008:

a. After all posting is complete on July 31, the company's Cash account has a 11M640 debit balance, but its bank statement shows a $28,700 balance.

b. Checks outstanding total $8,360.

c. In comparing the canceled checks returned by the bank with the entries in the accounting records, it is found that Check No. 2222 for July phone bill was correctly written and drawn for $720 but was erroneously entered in the accounting records as $270.

J. The bank charged Quill $40 for a safe-deposit box. Quill does not have a safe-deposit box.

e. A debit memorandum for $250 listi a $200 NSF check plus a $50 NSF charge. The check had been received from the Public Trust bank. Quill has not yet recorded this check as NSF.

f. Enclosed with the statement is a $40 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.

g. The July 31 daily cash receipts of $6,000 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.

Required

1. Prepare a bank reconciliation for this company as of July 31, 2008.

2. Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of July 31, 2008.