Question
* PARTS 2-4 * Required: Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data
* PARTS 2-4 *
Required:
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, 20Y2, 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 | ||
3 | 854.17 | 15 | 882.95 | 24 | 947.21 | ||
8 | 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 |
1. Prepare a bank reconciliation as of June 30, 20Y2. 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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. Round your answers to two decimal places. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places.
3. What is the amount of Cash that should appear on the balance sheet as of June 30, 20Y2?
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 reconciliation and how it should be corrected
CHART OF ACCOUNTS
Beeler Furniture Company
General Ledger
ASSETS | |
110 | Cash |
111 | Petty Cash |
120 | Accounts Receivable |
131 | Notes Receivable |
141 | Merchandise Inventory |
145 | Office Supplies |
146 | Store Supplies |
151 | Prepaid Insurance |
181 | Land |
191 | Office Equipment |
192 | Accumulated Depreciation-Office Equipment |
193 | Store Equipment |
194 | Accumulated Depreciation-Store Equipment |
LIABILITIES | |
210 | Accounts Payable |
221 | Notes Payable |
222 | Interest Payable |
231 | Salaries Payable |
241 | Sales Tax Payable |
EQUITY | |
310 | Common Stock |
311 | Retained Earnings |
312 | Dividends |
REVENUE | |
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
510 | Cost of Merchandise Sold |
515 | Credit Card Expense |
516 | Cash Short and Over |
520 | Salaries Expense |
531 | Advertising Expense |
532 | Delivery Expense |
533 | Insurance Expense |
534 | Office Supplies Expense |
535 | Rent Expense |
536 | Repairs Expense |
537 | Selling Expenses |
538 | Store Supplies Expense |
561 | Depreciation Expense-Office Equipment |
562 | Depreciation Expense-Store Equipment |
590 | Miscellaneous Expense |
710 | Interest Expense |
Amount Descriptions | |
Adjusted balance | |
Bank service charges | |
Check returned because of insufficient funds | |
Error in recording June 10 deposit | |
Error in recording June 24 deposit | |
Error in recording Check No. 743 | |
Deposit in transit on June 30 | |
Note collected by bank, including $210 interest | |
Outstanding Check No. 738 | |
Outstanding Check No. 756 | |
Outstanding Check No. 758 | |
Outstanding Check No. 759 | |
Total additions | |
Total deductions |
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