Reference no: EM132166210

Question - On July 31, 201X, K Jansen Inc. had a cash balance per general ledger or books of $6,140.00. The bank statement from Wells Fargo Bank on that date showed a balance of $7,690.80. A comparison of the bank statement with the Cash account revealed the following facts.

1. The bank service charge for July was $25.

2. The bank collected $1,520 for K Jansen Inc. through electronic funds transfer. This amount was for a payment against a customer's accounts receivable.

3. The July 31 receipts of $1,183.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.

4. Company check No. 2490 issued to Save Inc, an accounts payable creditor, for $384 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $338.

5. Checks outstanding on July 31 totaled $1,860.10.

6. On July 31, the bank statement showed an NSF charge of $575 for a check received by the company from Steve Smith, a customer, on account (a payment for his account receivable).

Instructions - Prepare the bank reconciliation as of July 31. Use the template below. Make sure you list each item in addition to the dollar amount.