Instructions

1. Prepare 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.

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