Question
Beeler Furniture Company deposits all cash receipts each Wednesday Friday in a night depository after banking hours.The data required to reconcile the bank statement as
Beeler Furniture Company deposits all cash receipts each Wednesday 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 June 1 Amount $1,080.50
June 3 Amount $854.17
June 8 Amount $ 840.50
June 10 Amount $996.61
June 15 Amount $882.95
June 17 Amount $1,606.74
June 22 Amount $897.34
June 24 Amount $947.21
June 30 Amount $1,117.74
CHECKS WRITTEN;
Number and amount of each check issued in June;
Check No Amount
740 $237.50
741 $495.15
742 $501.90
743 $761.30
744 $506.88
745 $117.25
746 $298.66
747 Void
748 $450.90
749 $640.13
750 $276.77
751 $299.37
752 $537.01
753 $380.95
754 $449.75
755 $272.75
756 $113.95
757 $407.95
758 $259.60
759 $901.50
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, 20Y2
Cash balance according to bank statement $ 9,447.20
Add deposit for May 31, not recorded by bank 690.25
Deduct outstanding checks;
No. 731 $162.31
736 345.95
738 251.40
739 60.55
820.05
Adjusted balance $9,317.40
Cash balance according to company's records $9.352.50
Deduct bank service charges 35.10
Adjusted balance $ 9,317.40
Question 1
(a) Prepare a bank reconciliation as of June 30, 20Y2. If errors in recording deposits or checks are discovered, assume that errors were made by company.Assume that all deposits are from cash sales.All checks are written to satisfy accounts payable.
(b) Journalize the necessary entries.The accounts have been closed.
(c) What is the amount of cash that should appear on the balance sheet as of June 30 ?
(d) Assume that a cancelled 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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