Green Valley Bank sent Comstock Industries its end-of-month bank statement for July. The end of month balance by the bank is $11,237. The statement shows that a deposit for $4,250 is in transit at the end of the statement period. The statement also revealed that checks for $87, $105, and $95 are outstanding. Green Valley collected a $4,000 note receivable plus $120 of interest revenue. The bank charges $20 for the collection service. The bank charges a monthly account fee of $35. The end-of-month balance per company books is $11,135. Question Content Area a. Prepare a bank reconciliation. Comstock Industries Bank Reconciliation July 31 Line Item Description Amount Amount Cash balance according to bank statement $Cash balance according to bank statement Deduct: Deposits in transit Deduct: Outstanding checks Adjusted balance $Adjusted balance Cash balance according to company's records $Cash balance according to company's records Add: Note and interest collected by bank $Deduct: Collection fee Deduct: Bank service charge Total deductions Total deductions Adjusted balance $Adjusted balance Question Content Area b. Journalize any necessary entries based on the bank reconciliation. Record the entry to increase cash first. If an amount box does not require an entry, leave it blank. DateAccountDebitCredit July 31 July 31 Question Content Area c. If the balance sheet were prepared for Comstock Industries on July 31, what amount should be reported for cash? fill in the blank 1 of 1$

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

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Green Valley Bank sent Comstock Industries its end-of-month bank statement for July. The end of month balance by the bank is $11,237. The statement shows that a deposit for $4,250 is in transit at the end of the statement period. The statement also revealed that checks for $87, $105, and $95 are outstanding. Green Valley collected a $4,000 note receivable plus $120 of interest revenue. The bank charges $20 for the collection service. The bank charges a monthly account fee of $35. The end-of-month balance per company books is $11,135. Question Content Area a. Prepare a bank reconciliation. Comstock Industries Bank Reconciliation July 31 Line Item Description Amount Amount Cash balance according to bank statement $Cash balance according to bank statement Deduct: Deposits in transit Deduct: Outstanding checks Adjusted balance $Adjusted balance Cash balance according to company's records $Cash balance according to company's records Add: Note and interest collected by bank $Deduct: Collection fee Deduct: Bank service charge Total deductions Total deductions Adjusted balance $Adjusted balance Question Content Area b. Journalize any necessary entries based on the bank reconciliation. Record the entry to increase cash first. If an amount box does not require an entry, leave it blank. DateAccountDebitCredit July 31 July 31 Question Content Area c. If the balance sheet were prepared for Comstock Industries on July 31, what amount should be reported for cash? fill in the blank 1 of 1$

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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