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Blue Spruce Spa shows a general ledger balance for the Cash account of $4,165.85 on June 30 and the bank statement as of that date
Blue Spruce Spa shows a general ledger balance for the Cash account of $4,165.85 on June 30 and the bank statement as of that date indicates a balance of $4,130.00. When the statement was compared with the cash records, the following facts were determined:
1. | There were bank service charges for June of $28.00. | |
2. | A bank memo stated that Bao Dais note for $916.00 and interest of $34.00 had been collected on June 29, and the bank had charged $5.00 for the collection. Any interest revenue has not been accrued. | |
3. | Deposits in transit June 30 were $2,960.00. | |
4. | Cheques outstanding on June 30 totalled $2,063.05. | |
5. | On June 29, the bank had charged Blue Spruce Spas account for a customers NSF cheque amounting to $523.20. | |
6. | A customers cheque received as a payment on account of $93.00 had been entered as $69.00 in the cash receipts journal by Blue Spruce Spa on June 15. | |
7. | Cheque no. 742 in the amount of $505.00 had been entered in the books as $440.00, and cheque no. 747 in the amount of $49.70 had been entered as $558.00. Both cheques were issued as payments on account. | |
8. | In May, the bank had charged a $26.50 Wella Spa cheque against the Blue Spruce Spa account. The June bank statement indicated that the bank had reversed this charge and corrected its error. |
(a)
Prepare a bank reconciliation at June 30. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 52.75.)
Blue Spruce Spa Bank Reconciliation June 30 | ||||
$ | ||||
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$ | ||||
$ | ||||
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$ | ||||
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