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    Bank reconciliation - Haverman Company

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    Haverman Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.

    Cash in Bank
    Per Books Per Bank
    Balance, July 1 $17,600 $16,800
    July receipts 81,400
    July credits 82,470
    July disbursements 77,150
    July debits


    Balance, July 31



    Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $3,470 for the collection of a $3,400 note plus interest revenue of $70.The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printing additional company checks.
    You also discover the following errors involving July checks: (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320. (2) A salary check to an employee for $255 was recorded by the bank for $155.
    The June 30 bank reconciliation contained only two reconciling items: deposits in transit $7,000 and outstanding checks of $6,200.

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    Solution Summary

    The solution explains how to prepare a bank reconciliation for Haverman Company