The bank statement for Urethane Company for June 30, 20Y2, indicates a balance of $9,293.11.
All cash receipts are deposited each evening in a night depository, after banking hours. The accounting records indicate the following summary data for cash receipts and payments for June:

Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

a. The bank had collected for Urethane Company $1,030 on a note left for collection. The face amount of the note was $1,000.

b. A deposit of $1,852.21, representing receipts of June 30, had been made too late to appear on the bank statement.

c. Checks outstanding totaled $5,265.27.

d. A check drawn for $139 had been incorrectly charged by the bank as $157.

e. A check for $370 returned with the statement had been recorded in the company’s records as $730. The check was for the payment of an obligation to Avery Equipment Company for the purchase of office supplies on account.

f. Bank service charges for June amounted to $18.20.

Instructions

1. Prepare a bank reconciliation for June.
2. Journalize the entries that should be made by Urethane Company.

Transcribed Image Text:

Cash balance as of June 1 Total cash receipts for June Total amount of checks issued in June $ 3,943.50 28,971.60 28,388.85