Question

PLEASE HELP DUE AT 11:59

The following data have been gathered for Syncronics, Inc.:
a. The July 31 bank balance was $4,000,
b. The bank statement included $65 in service charges.
c. There was an EFT deposit of $900 on the bank statement for the monthly rent from
the tenant.
d. Checks #541 and #543 for $205 and $320, respectively, were not among the canceled
checks returned with the statement, therefore the checks are outstanding.
e. The July 31 deposit of $350 did not appear on the bank statement
f. The bookkeeper had erroneously recorded a $50 check as $500. The check was
written to a vendor to pay- off an accounts payable.
g. Included with the canceled checks was a check written by Syncronize
Corporation for $200 which was deducted from Syncronics' account. .
h. The bank statement also included an NSF check written by Multimedia, Inc for a $460
payment on accounts receivable
i. The cash account showed a balance of $3,200 on July 31.
REQUIRED:
1. Prepare the July 31 bank reconciliation for Syncronics Inc.
2. Adjust the Cash Balance (using Journal Entries, T accounts, or the Accounting Equation).

Answer 1

Step-by-step explanation:

July 31 Bank Reconciliation for Syncronics Inc.

Balance per bank statement:

Beginning balance: $4,000

Service charges: -$65

EFT deposit: +$900

Outstanding checks: -$525 (check #541 for $205, check #543 for $320)

NSF check: -$460

Adjusted balance per bank statement: $3,750 ($4,000 - $65 + $900 - $525 - $460)

Balance per company's records:

Beginning balance: $3,200

Deposit in transit: +$350

Erroneously recorded check: -$450 ($500 - $50)

Deducted check: -$200

Adjusted balance per company's records: $2,900 ($3,200 + $350 - $450 - $200)

Adjusted Cash Balance:

To adjust the cash balance on Syncronics' books to the reconciled balance of $3,750, the following journal entry can be made:

Debit: Cash (increase) $850 ($3,750 - $2,900)

Credit: Accounts Receivable (decrease) $850

Alternatively, the T-account for Cash can be adjusted:

Beginning balance: $3,200

Add: Deposit in transit $350

Less: Erroneously recorded check -$500

Less: Deducted check -$200

Adjusted balance: $2,850

Then, the adjusting entry would be:

Debit: Cash (increase) $900 ($3,750 - $2,850)

Credit: Accounts Receivable (decrease) $900