Question
Cash Date 2015 Explanation Ref Debit Credit Balance June 1 Balance 2,657 1 750 3,407 3 Check #600 625 2,782 3 Check #601 95 2,687
Cash
Date 2015 | Explanation | Ref | Debit | Credit | Balance |
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 Inc.
June 30, 2018
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 |
| 4,180 |
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 |
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 cell phone 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. Instructions
(a) Prepare Cookie Creations bank reconciliation for June 2018.
(b) Prepare any necessary general journal entries.
(c) If a balance sheet is prepared for Cookie Creations Inc. at June 30, 2018, what balance will be reported as cash in the current assets section?
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