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Question
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 charged monthly service fees of $55. The end-of-month balance per company records is $11,135.
a. Prepare a bank reconciliation as of July 31.
b. Journalize any necessary entries based on the bank reconciliation.
Answer
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