ACCT 505 Chapter 4 Homework

Problem 4-22 Bank reconciliation and adjustments to the cash account LO 4-2

 The following information is available for Sunset Valley Hotel for July 2014:   

 BANK STATEMENT
STATE BANK
Bolta Vista, NV 10001     Sunset Valley Hotel
  10 Main Street
  Bolta Vista, NV 10001 Account number  
12-4567  
July 31, 2014       Beginning balance 6/30/2014 $  9,090                          Total deposits and other credits 30,194                          Total checks and other debits 24,287                          Ending balance 7/31/2014 14,997                         Checks and Debits Deposits and Credits   Check No. Amount Date Amount             2350 $ 3,811   July    1 $ 1,155               2351   1,696   July  10   6,557               2352   8,054   July  15   4,996               2354   2,955   July  21   6,223               2355   1,462   July  26   6,019               2357   6,238   July  30   2,138               DM   71   CM      3,106          

The following is a list of checks and deposits recorded on the books of the Sunset Valley Hotel for July 2014:

 Date    Check No. Amount of Check Date Amount of Deposit   July    2 2351 $ 1,696   July    8 $ 6,557     July    4 2352   8,054   July  14   4,996     July  10 2353   1,553   July  21   6,223     July  10 2354   2,955   July  26   6,019     July  15 2355   1,462   July  29   2,138     July  20 2356   801   July  30   3,599     July  22 2357   6,238                    

 Other Information     1. Check no. 2350 was outstanding from June.   2. The credit memo was for collection of notes receivable.   3. All checks were paid at the correct amount.   4. The debit memo was for printed checks.   5. The June 30 bank reconciliation showed a deposit in transit of $1,155.   6. The unadjusted Cash account balance at July 31 was $13,207.   

Required

 a. Prepare the bank reconciliation for Sunset Valley Hotel at the end of July.

How the adjustments described above affect the cash account. (If the adjustments does not effect the cash account then select "Not affected".)