Problem 1 - Bank Reconciliation (12 pts) CHAPTER 6

1. Complete the June 30, 2009 bank reconciliation for Hollohan, Inc. using the following information:

a Outstanding checks:

No. 181 .......................... $600

No. 184 .......................... $200

No. 185 .......................... $3,100

b Check no. 142 for Custodial Supplies was written for $500 but erroneously recorded in Hollohan 's records as $300. Difference = $200

c Deposit in transit.............. $4,900

d June Rental Revenue collected for Hollohan by the bank directly from Hollohan 's tenants - $5,600

e NSF check returned by bank - $360

f Bank service charge......... $40

For the numerical answer fields below, enter whole numbers only, no decimals with zeroes. For the "Less" amounts, enter as positive numbers, no minus signs or brackets. Also, DO NOT put dollar signs and make sure you put commas between the hundreds and thousands place, and between the hundred-thousands and millions place, or it will be counted as wrong.

For Outstanding Checks, enter as one total only.

Hollohan, Inc

Bank Reconciliation

June 30, 2009

Balance per bank statement, June 30 $23,000

Add: $ __

Less: $ __

Adjusted Cash Balance, June 30 $ __

Balance per books, June 30 $19,000

Add: $ __

Less: $ __

$ __

$ __

Adjusted balance, June 30 (as above) $ __

2. Give in general journal form the entry or entries necessary to correct Hollohans records as of June 30. (Explanations may be omitted)

One compound journal entry is acceptable. You will have four debit entries and one credit entry. For Cash, use one net debit or credit entry for the adjustment between Book Balance and Adjusted Balance.

The worksheet above is presented for illustration only.

However, if you prefer, you may instead go to Files and download the JE worksheet, fill out manually, and email back to me. I will accept your answers either way.

Please note that ACCOUNT TITLES go in the odd-numbered boxes on the left, just as they would appear in the General Journal column on the worksheet above. DO NOT abbreviate or it will be counted as wrong.

Also, AMOUNTS go in the even-numbered boxes on the right, just as they would appear in the Debit and Credit columns on the worksheet above.

Remember to put the commas where they belong, DO NOT put dollar signs, and enter whole numbers only - no decimals with zeroes - or it will be counted as wrong.

debitacct1 debitamount1

debitacct2 debitamount2

debitacct3 debitamount3

debitacct4 debitamount4

creditacct1 creditamount1