Question
One way that you can ensure that your cash account does not have any errors and is accurate and up-to-date is to prepare a bank
One way that you can ensure that your 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. Prepare a bank reconciliation for June 2021 using the following information.
GENERAL LEDGER
Cash | |||||
Date | Explanation | Ref. | Debit | Credit | Balance |
2021 June 1 1 3 3 8 9 13 20 28 28 |
Balance
Check #600 Check #601 Check #602
Check #603
Check #604 |
|
750
1,050
155
110 |
625 95 56
425
297 |
2,657 3,407 2,782 2,687 2,631 3,681 3,256 3,411 3,114 3,224 |
PREMIER BANK
Statement of Account
June 30, 2021
Date | Explanation | Checks and Other Debits | Deposits | Balance |
May 31 June 1 6 6 8 9 10 10 14 20 23 28 30 | Balance Deposit Check #600 Check #601 Check #602 Deposit NSF Check NSF Fee Check #603 Deposit EFT Telus Check #599 Bank charges |
625 95 56
100 35 452
85 361 13 |
750
1,050
125 | 3,256 4,006 3,381 3,286 3,230 4,280 4,180 4,145 3,693 3,818 3,733 3,372 3,359 |
Additional information:
- 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 you received for a party. You made an error in recording this transaction.
- The electronic funds transfer (EFT) was for your utilities expense.
- The NSF check was from Ron Black. You received this check for catering a class for Rons children. You contacted Ron, and he assured her that you will receive a check in the mail for the outstanding amount of the invoice and the NSF bank charge.
Required
- Prepare any necessary adjusting entries at June 30.
- If a balance sheet is prepared at June 30, what balance will be reported as cash in the current assets section?
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