Bank Transactions Analysis
What are the key bank transactions and charges for July?
1. What was the bank service charge for July?
2. How much did the bank collect for Windsor through electronic funds transfer?
3. What was the amount of the incorrectly recorded check issued to L. Taylor?
4. How much were the outstanding checks on July 31?
5. What was the NSF charge for a bounced check received from W. Krueger?
Overview of Bank Transactions for July
1. The bank service charge for July was $22.00.
2. The bank collected $1,650.00 for Windsor through electronic funds transfer.
3. Company check No. 2480 issued to L. Taylor was for $364.00.
4. The total outstanding checks on July 31 amounted to $1,972.10.
5. The NSF charge for a bounced check received from W. Krueger was $705.00.
Bank service charge: The bank charged the company $22.00 as a fee for the banking services provided during July. This is an expense for the company.
Bank collection: The bank collected $1,650.00 on behalf of the company from Windsor through an electronic funds transfer. This increases the company's cash balance.
Incorrectly recorded check: Check No. 2480, which was issued to L. Taylor for $364.00, was mistakenly recorded as a cash payment on July 10. The correction needs to be made in the company's records to reflect the actual payment.
Checks outstanding: As of July 31, there are checks issued by the company that have not yet cleared the bank. The total outstanding amount is $1,972.10, which needs to be considered when reconciling the bank statement.
NSF charge: The bank statement for July shows an NSF (Non-Sufficient Funds) charge of $705.00. This charge is imposed by the bank when a check received by the company from W. Krueger on account bounces due to insufficient funds. This is a deduction from the company's cash balance.
The bank service charge of $22.00 and the NSF charge of $705.00 are expenses that decrease the company's cash balance. The bank collection of $1,650.00 from Windsor increases the cash balance. The incorrectly recorded check of $364.00 needs to be corrected in the company's records. The checks outstanding on July 31 amounting to $1,972.10 need to be taken into account when reconciling the bank statement. These transactions and adjustments should be considered in the company's financial records and bank reconciliation process.