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Problem 1: How to prepare a bank reconciliation for July 31 and Journalize the adjusting entries for July 31 on the books of Cullumber Company.
The following information is for Cullumber Company:
1. Cash balance per bank, July 31, $9,1302. July bank service charge not recorded by the depositor, $30.3. The bank erroneously charged another company's $870 cheque against Cullumber's account.4. Cash balance per books, July 31, $10,892.5. The bank charged Cullumber's account $430 for a customer's NSF cheque.6. Deposits in transit, July 31, $2,730.7. Cullumber recorded a cash receipt for a cash sale from a customer as $32. The bank correctly recorded it as $23.8. The bank collected a $1,550 note for Cullumber in July, plus interest of $45, less a fee of $25. The collection has not been recorded by Cullumber and no interest has been accrued.9. Outstanding cheques, July 31, $737.
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