Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Additional information: 1. On May 31, there were two outstanding checks: #595 for $238 and #599 for $361. 2. Premier Bank made a posting error

Additional information:

1. On May 31, there were two outstanding checks: #595 for $238 and #599 for $361.
2. Premier Bank made a posting error to the bank statement: check #603 was issued for $425, not $452.
3. The deposit made on June 20 was for $125 that Natalie received for teaching a class. Natalie made an error in recording this transaction.
4. The electronic funds transfer (EFT) was for Natalies cellphone use. Remember that she uses this phone only for business.
5.

The NSF check was from Ron Black. Natalie received this check for teaching a class to Rons children. Natalie contacted Ron, and he assured her that she will receive a check in the mail for the outstanding amount of the invoice and the NSF bank charge.

Natalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not have any errors and is accurate and up-to-date is to prepare a bank reconciliation at the end of each month.

Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2017 using the following information.

GENERAL LEDGERCOOKIE CREATIONS
Cash
Date Explanation Ref Debit Credit Balance
2017
June 1 Balance 2,657
1 750 3,407
3 Check #600 625 2,782
3 Check #601 95 2,687
8 Check #602 56 2,631
9 1,050 3,681
13 Check #603 425 3,256
20 155 3,411
28 Check #604 297 3,114
28 110 3,224

PREMIER BANK Statement of AccountCookie Creations June 30, 2017
Date Explanation Checks and Other Debits Deposits Balance
May 31 Balance 3,256
June 1 Deposit 750 4,006
6 Check #600 625 3,381
6 Check #601 95 3,286
8 Check #602 56 3,230
9 Deposit 1,050 4,280
10 NSF check 100
10 NSFfee 35 4,145
14 Check #603 452 3,693
20 Deposit 125 3,818
23 EFTTelus 85 3,733
28 Check #599 361 3,372
30 Bank charges 13

3,359

  • Prepare Cookie Creations bank reconciliation for June 30.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Data Analytics Methodology

Authors: Leonard W Vona

1st Edition

111918679X, 9781119186793

More Books

Students also viewed these Accounting questions

Question

Behaviour: What am I doing?

Answered: 1 week ago