Answered step by step
Verified Expert Solution
Question
1 Approved Answer
BANK STATEMENT Myrtle Beach State Bank 215 Main Street Myrtle Beach, South Carolina Show Me, Inc Account Number 629 Main Street 62-00062 Myrtle Beach, SC
BANK STATEMENT | ||||||
Myrtle Beach State Bank | ||||||
215 Main Street | ||||||
Myrtle Beach, South Carolina | ||||||
Show Me, Inc | Account Number | |||||
629 Main Street | 62-00062 | |||||
Myrtle Beach, SC | June 30, 2013 | |||||
Beginning Balance 6/1/2013 | $ 2,134.00 | |||||
Total Deposits and Other Credits | 4,195.00 | |||||
Total Checks and Other Debits | 3,431.00 | |||||
Ending Balance 6/30/2013 | $ 2,898.00 | |||||
Checks and Debits | Deposits and Credits | |||||
Date | Check No. | Amount of Check | Date | |||
6/1/2013 | 1230 | $ 62.00 | 3/5/2013 | $ 1,340.00 | ||
6/5/2013 | 1231 | 1,235.00 | 6/11/2013 | 210.00 | ||
6/10/2013 | 1232 | 750.00 | 6/18/2013 | 500.00 | ||
6/15/2013 | 1233 | 1,111.00 | 6/25/2013 | 1,940.00 | ||
6/23/2013 | 6877 | 170.00 | Note Collected | 205.00 | ||
6/14/2013 | NSF | 86.00 | ||||
6/30/2013 | Service Charge | 17.00 | ||||
The following is a list of checks and deposits recorded on the books of Show Me, Inc., for | ||||||
June, 20013. | ||||||
Date | Check Number | Amount of Check | Date | Amount of Deposit | ||
6/1/2013 | 1230 | $ 62.00 | 3/5/2013 | $ 1,340.00 | ||
6/5/2013 | 1231 | 1,235.00 | 6/11/2013 | 210.00 | ||
6/10/2013 | 1232 | 750.00 | 6/18/2013 | 500.00 | ||
6/15/2013 | 1233 | 1,111.00 | 6/25/2013 | 1,940.00 | ||
6/30/2013 | 1234 | 165.00 | 6/30/2013 | 212.00 | ||
Show Me, Inc., T Accounts | ||||||
Cash | ||||||
Show Me, Inc. BANK RECONCILIATION | ||||||
Ending Bank Balance | ||||||
Add: | ||||||
Notes Receivable | ||||||
Less: | ||||||
True Cash Balance | - | |||||
Accounts Receivable | ||||||
Book Balance | ||||||
Add: | ||||||
Less: | ||||||
Interest Income | ||||||
True Cash Balance | - | |||||
Bank Charges | ||||||
Horizontal Model | ||||||
Cash | Notes Receivable | Accounts Receivable | Interest Income | Bank Charges | ||
Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information: | ||||||
(a.) The June 30 balance shown on the bank statement is $2,898. | ||||||
(b.) Outstanding checks at June 30 totaled $165. | ||||||
(c.) A deposit of $212 made on June 30 was not included in the balance shown on the bank statement. | ||||||
(d.) The bank statement contained an adjustment of $205 for a note receivable collected by the bank on | ||||||
behalf of Show Me ($191 principal and $14 interest). | ||||||
(e.) A bank charge of $17 was made to the account during June. Although the company was expecting a | ||||||
charge, the amount was not known until the bank statement arrived. | ||||||
(f.) The bank erroneously charged a $170 check of Shirt, Inc., against the Show Me, Inc., bank account. | ||||||
(g.) The June 30 balance in the general ledger Cash account, before reconciliation, is $3,013. | ||||||
(h.) The bank statement included a notice that a customer's check for $86 that had been deposited on | ||||||
June 14 had been returned NSF. | ||||||
Required: | ||||||
(1.) Prepare the bank reconciliation for Show Me, Inc., as of June 30. | ||||||
(2.) Prepare the appropriate adjusting entry(ies) or show the reconciling items in a horizontal model, for Show Me, Inc., | ||||||
related to the bank reconciliation. | ||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started