Exercise 218

The bank statement for Cates Company indicates a balance of $1,730 on June 30. The cash balance per books had a balance of $799 on this date. The following information pertains to the bank transactions for the company.

1.Deposit of $760, representing cash receipts of June 30, did not appear on the bank statement.

2.Outstanding checks totaled $340.

3.Bank service charges for June amounted to $25

4.The bank collected a note receivable for the company for $1,400 plus $56 interest revenue.

5.An NSF check for $80 from a customer was returned with the statement.

bank reconciliation for June 30.

CATES COMPANY

Bank Reconciliation

June 30

and

Date

Account Titles and Explanation

Debit

Credit

June. 30

(To record collection of note receivable and interest by the bank)

30

(To record NSF check)

30