Cayemberg Company maintains a checking account at the Commerce Bank. At July 31, selected data…
Cayemberg Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.
| Balance, July 1 | $18,024 | $17,224 | ||
| July receipts | 81,824 | |||
| July credits | 82,894 | |||
| July disbursements | 77,574 | |||
| July debits | 75,180 | |||
| Balance, July 31 | $22,274 | $24,938 |
Analysis of the bank data reveals that the credits consist of $80,990 of July deposits and a credit memorandum of $1,904 for the collection of a $1,824 note plus interest revenue of $80. The July debits per bank consist of checks cleared $75,114 and a debit memorandum of $66 for printing additional company checks.
You also discover the following errors involving July checks: (1) A check for $480.00 to a creditor on account that cleared the bank in July was journalized and posted as $840.00. (2) A salary check to an employee for $855 was recorded by the bank for $755.
The June 30 bank reconciliation contained only two reconciling items: deposits in transit $7,424 and outstanding checks of $6,624.
