The following information pertains to Carla Vista Company. 1. Cash balance per bank, July 31, $7,738.
2. July bank service charge not recorded by the depositor $48.
3. Cash balance per books, July 31, $7,774.
4. Deposits in transit, July 31, $3,110.
5. $2,426 collected for Carla Vista Company in July by the bank through electronic funds transfer. The collection has not been recorded by Carla Vista Company.
6. Outstanding checks, July 31, $696.
Prepare a bank reconcilliation at July 31 2017.
Journalize the adusting entries at July 31 on the books of Carla Vista company.

Bank account reconciliation:

Bank account balance $7,738

+ Deposits in transit $3,110

- Outstanding checks $696          

Reconciled bank account $10,152

Cash account reconciliation:

Cash account balance $7,774

+ Note (or account) collected $2,426

- Bank fees $48                            

Reconciled cash account $10,152

Adjusting journal entries:

July 31, 202x, bank fees expense

Dr Bank fees expense 48

    Cr Cash 48

July 31, 202x, bank fees expense

Dr Cash 2,426

    Cr Notes (or accounts) receivable 2,426

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.