Instructions

1. Prepare a bank reconciliation as of June 30. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable.

2. Journalize the necessary entries. The accounts have not been closed.

3. What is the amount of Cash that should appear on the balance sheet as of June 30?

4. Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconcilia- tion and how it should be corrected.

PR 8-5A Bank reconciliation and entries ObJ. 5

Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account.

Bank data is printed in capital letters

CASH ACCOUNT: Balance as of June 1 CASH RECEIPTS FOR MONTH OF JUNE DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June: $9,317.40 $9,223.76 Date Amount Date June 1 $1,080.50 June 10 3 854.17 15 8 840.50 17 CHECKS WRITTEN: Number and amount of each check issued in June: Amount $ 996.61 882.95 1,606.74 Date June 22 24 30 Amount $ 897.34 947.21 1,117.74 Check No. Amount Check No. 740 $237.50 747 741 495.15 748 742 501.90 749 743 761.30 750 744 506.88 751 745 117.25 752 746 298.66 753 Total amount of checks issued in June BANK RECONCILIATION FOR PRECEDING MONTH: Amount Void $450.90 640.13 276.77 299.37 537.01 380.95 Check No. 754 755 756 757 758 759 760 Amount $ 449.75 272.75 113.95 407.95 259.60 901.50 486.39 $8,395.66 Beeler Furniture Company Bank Reconciliation May 31, 20 Cash balance according to bank statement.. Add deposit for May 31, not recorded by bank... $ 9,447.20 690.25 $10,137.45 Deduct outstanding checks: No. 731 736 738 739 Adjusted balance... Cash balance according to company's records Deduct service charges. Adjusted balance..... $162.15 345.95 251.40 60.55 820.05 $ 9,317.40 $ 9,352.50 35.10 $ 9,317.40 CASH ACCOUNT: Balance as of June 1 CASH RECEIPTS FOR MONTH OF JUNE DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June: $9,317.40 $9,223.76 Date Amount Date June 1 $1,080.50 June 10 3 854.17 15 8 840.50 17 CHECKS WRITTEN: Number and amount of each check issued in June: Amount $ 996.61 882.95 1,606.74 Date June 22 24 30 Amount $ 897.34 947.21 1,117.74 Check No. Amount Check No. 740 $237.50 747 741 495.15 748 742 501.90 749 743 761.30 750 744 506.88 751 745 117.25 752 746 298.66 753 Total amount of checks issued in June BANK RECONCILIATION FOR PRECEDING MONTH: Amount Void $450.90 640.13 276.77 299.37 537.01 380.95 Check No. 754 755 756 757 758 759 760 Amount $ 449.75 272.75 113.95 407.95 259.60 901.50 486.39 $8,395.66 Beeler Furniture Company Bank Reconciliation May 31, 20 Cash balance according to bank statement.. Add deposit for May 31, not recorded by bank... $ 9,447.20 690.25 $10,137.45 Deduct outstanding checks: No. 731 736 738 739 Adjusted balance... Cash balance according to company's records Deduct service charges. Adjusted balance..... $162.15 345.95 251.40 60.55 820.05 $ 9,317.40 $ 9,352.50 35.10 $ 9,317.40