Question
Cowboy Companys bank statement for June 30 showed a cash balance of $36,533. The companys general ledger Cash account showed a $32,850 debit balance. The
Cowboy Companys bank statement for June 30 showed a cash balance of $36,533. The companys general ledger Cash account showed a $32,850 debit balance. The following information was also available as of June 30:
1. A customers note for $750 was collected by the bank.
2. A debit memo included with the bank statement shows a $1,200 NSF check from a customer, J. Doe.
3. Included with the bank statement was a credit memorandum in the amount of $40 for interest deposited into Cowboy Company's bank account.
4. A deposit placed in the banks night depository on June 30 totaled $1,234. This deposit did not appear on the bank statement.
5. Outstanding checks as of June 30 totaled $5,432.
6. Examination of the checks on the bank statement with the entries in the accounting records reveals that check #245 for the payment of an rent expense was correctly written for $540, but as recorded in the accounting records as $450.
7. Included with the bank statement was a debit memorandum in the amount of $15 for bank service charges. These charges had not been recorded on the companys books.
Based on the above information, prepare the June bank reconciliation and necessary adjusting journal entries for Cowboy Company.
Bank Statement Balance | Book Balance | ||
Add: | Add: | ||
Deduct: | Deduct: | ||
Adjusted Bank Balance | Adjusted Book Balance | ||
Date | Account & Explanation | Debit | Credit |
---|---|---|---|
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