Reference no: EM132614699

Question - On August 1, 2020, Realfood Co. obtain a bank statement for the month of July 2020 with an ending balance as of July 31, 2020 of $ 63,000. As for the cash account balance in the general ledger the company on July 31, 2020, showed a balance of $ 53,280. Corporate accountant browse and find the causes of differences in the ending balance due to the following:

1. Deposits of $ 7,500 and $ 3,750 as of July 30 and 31, respectively, have not yet appeared current account.

2. The bank has received the settlement of a note receivable from a customer that is due with face value of $ 6,000 and interest of $ 370. The bank service charge for this transaction is $ 20.

3. A supplier check for $ 12,375 was booked incorrectly by the accountant for $ 1,237.50.

4. The bank returned a check from a customer for $ 7,875 because there was not enough funds.

5. There are 2 checks worth $ 2,790 and $ 4,185 respectively that have not been cashed by the bank suppliers and creditors.

6. Check on behalf of Rawfood Co. debited by the Bank to the Realfood Co. account. for $ 2,475.

7. The bank loan for a period of 2 years, submitted by the company for $ 40,000, has disbursed by the Bank as of July 31, 2020 and has not been recorded by the company.

8. There is an administrative expense for July of $ 60.

9. Interest income for July is $ 450.

10. Tax expense on July bank interest income is $ 7.50.

11. There was an auto debit in the checking account for last month's utility expenses (June) for a total of $ 11,250

Instruction - Make a Realfood Co. bank reconciliation, as of July 31, 2020 along with the required journals.