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Preparation of bank reconciliation statement from the given information.
The following information pertains to DeVries Company.
1. Cash balance per bank, July 31, $7,328. 2. July bank service charge not recorded by the depositor $40. 3. Cash balance per books, July 31, $7,280. 4. Deposits in transit, July 31, $1,700. 5. Note for $1,000 collected for DeVries in July by the bank, plus interest $36 less fee $20. The collection has not been recorded by Allied, and no interest has been accrued. 6. Outstanding checks, July 31, $772.
Instructions
a) Prepare a bank reconciliation at July 31, 2007. b) Journalize the adjusting entries at July 31 on the books of DeVries Company.
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