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 2020 using the following information.
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 2020 using the following information. GENERAL LEDGER-COOKIE CREATIONS Cash Date Explanation Ref Debit Credit Balance 2020 June 1 Balance 1 750 3 Check #600 625 3 Check #601 95 8 Check #602 56 2,657 3,407 2,782 2,687 2,631 3,681 3,256 3,411 3,114 3,224 9 1,050 13 Check #603 425 20 155 28 Check #604 297 28 110 PREMIER BANK Statement of Account-Cookie Creations June 30, 2020 Explanation Checks and Other Debits Deposits Balance Date Balance May 31 June 1 750 Deposit Check #600 6 625 3,256 4,006 3,381 3,286 3,230 4,280 6 Check #601 95 8 Check #602 56 9 1,050 Deposit NSF check 10 100 10 NSF-fee 35 14 Check #603 452 4,145 3,693 3,818 3,733 20 125 Deposit EFT-Telus 23 85 28 Check #599 361 3,372 3,359 30 Bank charges 13 Additional information: 1. 2. 3. On May 31, there were two outstanding checks: #595 for $238 and #599 for $361. Premier Bank made a posting error to the bank statement: check #603 was issued for $425, not $452. The deposit made on June 20 was for $125 that Natalie received for teaching a class. Natalie made an error in recording this transaction. The electronic funds transfer (EFT) was for Natalie's cell phone use. Remember that she uses this phone only for business. The NSF check was from Ron Black. Natalie received this check for teaching a class to Ron's 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. 4. 5. Prepare Cookie Creations' bank reconciliation for June 30. (List items that increase cash balance first. Reconcile cash balance per bank first.) COOKIE CREATIONS Bank Reconciliation $ $ $ $ Prepare any necessary adjusting entries at June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30 (To record bank charges.) June 30 (To record error in deposit made on June 20.) June 30 (To record EFT charges.) June 30 (To record NSF check.) If a balance sheet is prepared for Cookie Creations at June 30, what balance will be reported as cash in the current assets section? If a balance sheet were prepared, cash at June 30th, 2020 would be $ Click if you would like to Show Work for this question: Open Show Work
