3. The following information pertains to Stan Co.
Cash balance per bank, July 31: $7,263.
July bank service charge not recorded by depositor: $28
Cash balance per books, July 31: $7,284.
Deposits in transit, July 31: $1,500.
Bank collected $800 note for Stan in July, plus $36 interest, less $20 service fee. The collection has not been recorded by Stan, and no interest has been accrued.
Outstanding checks on July 31st: $691.
There are two parts to this question:
Prepare a bank reconciliation at July 31st.
Prepare the necessary adjusting journal entries.
The solution prepares a bank reconciliation and journal entries.