Reference no: EM132095179

Question - Jamison Company received a bank statement for the month of July 2015, which showed a balance per bank of $2,750. The company's Cash account in the general ledger showed a balance of $2,140 at July 31. Other information that may be relevant in preparing a bank reconciliation for July follows:

1. The bank returned an NSF check from a customer for $255.

2. The company recorded cash receipts of $405 on July 31 but this amount does not appear on the bank statement.

3. A payroll check correctly written and paid by the bank for $560 was incorrectly recorded in the cash payments journal for $650.

4. Checks which were written in June but still had not been presented to the bank for payment at July 31 amounted to $125.

5. The bank included a credit memorandum for $600, which represents a collection of a customer's note by the bank for the company; principal amount of the note was $450 and the remainder was interest.

6. The bank included a $15 debit memorandum for service charges for the month of July.

7. Checks written in July which have not been paid by the bank at July 31 amounted to $470.

Instructions:

1. Prepare a bank reconciliation for Jamison Company for July which reconciles the balance per books and the balance per bank to their adjusted correct balances.

2. Prepare the necessary adjusting entries for Jamison Company at July 31, 2015.