27 Dec The cash data of Duffy Automotive for July 2016 fo
The cash data of Duffy Automotive for July 2016 follow: Duffy Automotive received the following bank statement on July 31, 2016: Additional data for the bank reconciliation include the following: a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment. b. The unauthorized signature check was received from a customer and returned by the bank unpaid. c. The correct amount of check number 3115, a payment on account, is $1,380. (Duffy Automotive s accountant mistakenly recorded the check as $1,830.) d. The bank collected a note receivable for Duffy Automotive. Requirements 1. Prepare the Duffy Automotive bank reconciliation at July 31, 2016. 2. Prepare the journal entries required at July 31, 2016. 3. Describe how a bank account and the bank reconciliation help the general manager control Duffy Automotive s cash.
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