Problem 7-13

The cash account of Marigold Co. showed a ledger balance of $21,120.39 on June 30, 2017. The bank statement as of that date showed a balance of $22,410.00. Upon comparing the statement with the cash records, the following facts were determined.

1.		There were bank service charges for June of $135.00.
2.		A bank memo stated that Bao Dais note for $6,480.00 and interest of $194.40 had been collected on June 29, and the bank had made a charge of $29.70 on the collection. (No entry had been made on Marigolds books when Bao Dais note was sent to the bank for collection.)
3.		Receipts for June 30 for $18,306.00 were not deposited until July 2.
4.		Checks outstanding on June 30 totaled $11,534.67.
5.		The bank had charged the Marigold Co.s account for a customers uncollectible check amounting to $1,367.28 on June 29.
6.		A customers check for $486.00 (as payment on the customers Accounts Receivable) had been entered as $324.00 in the cash receipts journal by Marigold 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 $314.28 had been entered as $3,142.80. Both checks had been issued to pay for purchase of equipment and were payments on Marigolds Accounts Payable.

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

B. 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.)