Question
Natalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not
Natalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not have any errors and is accurate and up-to-date is to prepare a bank reconciliation at the end of each month. Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2016 using the following information.
GENERAL LEDGERCOOKIE CREATIONS | |||||
Cash | |||||
Date | Explanation | Ref | Debit | Credit | Balance |
2016 | |||||
June 1 | Balance | 2,657 | |||
1 | 750 | 3,407 | |||
3 | Check #600 | 625 | 2,782 | ||
3 | Check #601 | 95 | 2,687 | ||
8 | Check #602 | 56 | 2,631 | ||
9 | 1,050 | 3,681 | |||
13 | Check #603 | 425 | 3,256 | ||
20 | 155 | 3,411 | |||
28 | Check #604 | 297 | 3,114 | ||
28 | 110 | 3,224 |
PREMIER BANK Statement of AccountCookie Creations June 30, 2016 | |||||||||
Date | Explanation | Checks and Other Debits | Deposits | Balance | |||||
May 31 | Balance | 3,256 | |||||||
June 1 | Deposit | 750 | 4,006 | ||||||
6 | Check #600 | 625 | 3,381 | ||||||
6 | Check #601 | 95 | 3,286 | ||||||
8 | Check #602 | 56 | 3,230 | ||||||
9 | Deposit | 1,050 | 4,280 | ||||||
10 | NSF check | 100 | 4,180 | ||||||
10 | NSFfee | 35 | 4,145 | ||||||
14 | Check #603 | 452 | 3,693 | ||||||
20 | Deposit | 125 | 3,818 | ||||||
23 | EFTTelus | 85 | 3,733 | ||||||
28 | Check #599 | 361 | 3,372 | ||||||
30 | Bank charges | 13 | 3,359 |
Additional information:
1. | On May 31, there were two outstanding checks: #595 for $238 and #599 for $361. | |
2. | Premier Bank made a posting error to the bank statement: check #603 was issued for $425, not $452. | |
3. | The deposit made on June 20 was for $125 that Natalie received for teaching a class. Natalie made an error in recording this transaction. | |
4. | The electronic funds transfer (EFT) was for Natalies utilities expense. | |
5. | The NSF check was from Ron Black. Natalie received this check for teaching a class to Rons children. Natalie contacted Ron, and he assured her that she will receive a check in the mail for the outstanding amount of the invoice and the NSF bank charge. |
The NSF fee will be charged to the customer.
Continuing Cookie Chronicle 7 (Part Level Submission) Natalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not have any errors and is accurate and up-to-date is to prepare a bank reconciliation at the end of each month Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2016 using the following information. GENERAL LEDGER-COOKIE CREATIONS Cash Date Explanation Ref Debit Credit Balance 2016 2,657 3,407 625 2,782 95 2,687 56 2,631 3,681 425 3,256 3,411 297 3,114 3,224 June 1 Balance 750 3 Check #600 3 Check #601 8 Check #602 1,050 13 Check #603 20 28 Check #604 28 155 110 PREMIER BANK Statement of Account-Cookie Creations June 30, 2016 Date Explanation Checks and Other Debits Deposits Balance 3,256 May 31 BalanceStep by Step Solution
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