Financial Leadership for Hospitality Cash Reconciliations The cash account for Just Events Co. on June 30, 2011, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $19,427. b. A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement. C. The bank collected $26,500 on a $25,000 note due from a customer, including interest of $1,500. The company has not recorded this collected amount yet. d. A check for $4,000 returned with the statement had been incorrectly recorded by Just Events Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $195 had been erroneously charged by the bank as $915. f. Bank service charges for June amounted to $55. 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Include if you are Adding or Deducting from the balance and use negative numbers for deductions. 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet were prepared for Just Events Co. on June 30, 20Y1, what amount should be reported as cash? Amount Descriptions for reconciliations Adjusted balance Bank check recording error Bank service charges Deposit in transit on June 30 Error in recording check Note collected by bank, including $1,500 Interest Outstanding checks Total additions Total deductions Financial Leadership for Hospitality Cash Reconciliations CHART OF ACCOUNTS Just Events Co. General Ledger ASSETS REVENUE 410 Sales 110 Cash 111 Petty Cash 120 Accounts Receivable 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 131 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 211 Accounts Payable-Skyline Supply Co. 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense