P$7\mathrm{.}9$B $($LO $4)$ AP On June $30,2024,$ EZ Fertilizer's Cash account per its general ledger showed the following balance:

$\backslash$table$[[$CASH$,$No$.101],[$Date$,$Explanation,Ref,Debit,Credit,Balance$],[$Yure $30,$Balance,,,,$6,925]]$

The bank statement from Canada Bank on that date showed the following balance:

$\backslash$table$[[,$CANADA BANK,$],[$Clregues and Debits,Deposits and Credits,Daily Balance$],[xx,$XXX$,6,776]]$

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

The statement included a debit memo of $$40$ for printing of additional company cheques.

Cash sales of $$624$ on June $21$ were deposited in the bank. The bookkeeper recorded the deposit in the cash journal as $$62.$

Outstanding cheques on June $30$ totalled $$946$ and deposits in transit were $$1,587.$

On June $18,$ the company issued cheque #$1924$ for $$356$ to D$.$ Katz on account. The cheque, which cleared the bank in June, was incorrectly journalized and posted by EZ Fertilizer for $$536.$

A $$1,550$ note receivable was wired to the bank account of EZ Fertilizer on June $30$ plus $$45$ interest. The bank charged a $$25$ collection fee. No interest has been accrued on the note.

Included with the cancelled cheques was a cheque issued by EZ Company for $$234$ that was incorrectly charged to EZ Fertilizer by the bank.

On June $30,$ the bank statement showed an NSF charge of $$966$ for a cheque issued by Amanda Vallee, a customer, to EZ Fertilizer on account.

Instructions

a$.$ Prepare the bank reconciliation at June $30.$

b$.$ Prepare the necessary journal entries at June $30.$

Taking It Further The owner of EZ Fertilizer has advised the bookkeeper to prepare the company's bank reconciliation only at year end. Explain to the owner the benefits of preparing a monthly bank reconciliation.