Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account.

CASH ACCOUNT:
Balance as of June 1	$9,317.40
CASH RECEIPTS FOR MONTH OF JUNE	$9,223.76

DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June:

Date	Amount		Date	Amount		Date	Amount
June 1	$1,080.50		June 10	$996.61		June 22	$897.34
3	854.17		15	882.95		24	947.21
8	840.50		17	1,606.74		30	1,117.74

CHECKS WRITTEN: Number and amount of each check issued in June:

Check No.	Amount		Check No.	Amount		Check No.	Amount
740	$237.50		747	Void		754	$449.75
741	495.15		748	$450.90		755	272.75
742	501.90		749	640.13		756	113.95
743	761.30		750	276.77		757	407.95
744	506.88		751	299.37		758	259.60
745	117.25		752	537.01		759	901.50
746	298.66		753	380.95		760	486.39

Total amount of checks issued in June: $8,395.66

BANK RECONCILIATION FOR PRECEDING MONTH:

BEELER FURNITURE COMPANY

Bank Reconciliation

May 31, 2016

1	Cash balance according to bank statement		$9,447.20
2	Add deposit for May 31, not recorded by bank		690.25
3			$10,137.45
4	Deduct outstanding checks:
5	No. 731	$162.15
6	No. 736	345.95
7	No. 738	251.40
8	No. 739	60.55	820.05
9	Adjusted balance		$9,317.40
10
11	Cash balance according to companys records		$9,352.50
12	Deduct service charges		35.10
13	Adjusted balance		$9,317.40

JUNE BANK STATEMENT:

Click here to view.

	Required:
1.	Prepare a bank reconciliation as of June 30. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. (Note: Deduct, Add, No., or colons (:) will automatically appear if required.)
2.	Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.
3.	What is the amount of Cash that should appear on the balance sheet as of June 30?
4.	Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected.

Chart of Accounts

CHART OF ACCOUNTS

Beeler Furniture Company

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

Labels and Amount Descriptions

Labels
Cash and cash equivalents
Outstanding checks
Proceeds of note collected by bank
Amount Descriptions
Adjusted balance
Check returned because of insufficient funds
Deposit of June (insert day), not recorded by bank
Error in recording Check No. (insert check number)
Error in recording June (insert day) deposit
Interest
Principal
Service charges
(Check numbers are valid Amount Descriptions;
No. will appear automatically)

Bank Reconciliation

1. Prepare a bank reconciliation as of June 30. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. (Note:Deduct, Add, No., or colons (:) will automatically appear if required.)

BEELER FURNITURE COMPANY

Bank Reconciliation

June 30, 2016

1	Cash balance according to bank statement
2
3
4
5
6
7
8
9
10
11	Cash balance according to companys records
12
13
14
15
16
17
18
19
20
21

Journal

2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8

Final Questions

3. What is the amount of Cash that should appear on the balance sheet as of June 30?

4. Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Select how the error would be included in a bank reconciliation and how it should be corrected.

Treatment:

Deduction from cash per companys records

Deduction from cash per bank statement

Addition to cash per bank statement

Not included in a bank reconciliation

Addition to cash per companys records

To correct:

Journalize a correcting entry adding $930 to cash

Journalize an entry adding $540 to cash

Request that the bank correct the error

Deduct from the amount of bank service charges

Journalize an entry deducting $930 from cash

Journalize an entry deducting $540 from cash