Problem 7 13 The cash account of Carla Co showed a ledger balance of $9,426 84 on June 30, 2017 The bank statement as of that date showed a balance of $9,960 00 Upon comparing the statement with the cash records, the following facts were determined 1 There were bank service charges for June of $60 00 2 A bank memo stated that Bao Dais note for $2,880 00 and interest of $86 40 had been collected on June 29, and the bank had made a charge of $13 20 on the collection (No entry had been made on Carlas books when Bao Dais note was sent to the bank for collection ) 3 Receipts for June 30 for $8,136 00 were not deposited until July 2 4 Checks outstanding on June 30 totaled $5,126 52 5 The bank had charged the Carla Co s account for a customers uncollectible check amounting to $607 68 on June 29 6 A customers check for $216 00 (as payment on the customers Accounts Receivable) had been entered as $144 00 in the cash receipts journal by Carla on June 15 7 Check no 742 in the amount of $491 00 had been entered in the cash journal as $419 00, and check no 747 in the amount of $139 68 had been entered as $1,396 80 Both checks had been issued to pay for purchase of equipment and were payments on Carlas Accounts Payable 1 Prepare a bank reconciliation dated June 30, 2017, proceeding to a correct cash balance (Enter answers to 2 decimal places, e g 125 62 ) 2 Prepare entries necessary to make the books correct and complete Use Office Expense account for bank service charges (Enter answers to 2 decimal places, e g 125 62 If no entry is required, select No Entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when the amount is entered Do not indent manually )

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Problem 7-13 The cash account of Carla Co. showed a ledger balance of $9,426.84 on June 30, 2017. The bank statement as of that date

Problem 7-13

The cash account of Carla Co. showed a ledger balance of $9,426.84 on June 30, 2017. The bank statement as of that date showed a balance of $9,960.00. Upon comparing the statement with the cash records, the following facts were determined.

1.		There were bank service charges for June of $60.00.
2.		A bank memo stated that Bao Dais note for $2,880.00 and interest of $86.40 had been collected on June 29, and the bank had made a charge of $13.20 on the collection. (No entry had been made on Carlas books when Bao Dais note was sent to the bank for collection.)
3.		Receipts for June 30 for $8,136.00 were not deposited until July 2.
4.		Checks outstanding on June 30 totaled $5,126.52.
5.		The bank had charged the Carla Co.s account for a customers uncollectible check amounting to $607.68 on June 29.
6.		A customers check for $216.00 (as payment on the customers Accounts Receivable) had been entered as $144.00 in the cash receipts journal by Carla on June 15.
7.		Check no. 742 in the amount of $491.00 had been entered in the cash journal as $419.00, and check no. 747 in the amount of $139.68 had been entered as $1,396.80. Both checks had been issued to pay for purchase of equipment and were payments on Carlas Accounts Payable.

1. Prepare a bank reconciliation dated June 30, 2017, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g. 125.62.)

2. Prepare entries necessary to make the books correct and complete. Use Office Expense account for bank service charges. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)