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Rudder Scudder, Inc., received a bank statement for the month endingJune 30, 2015, which showed an ending balance of $3,600. The company's Cash account in
Rudder Scudder, Inc., received a bank statement for the month endingJune 30, 2015, which showed an ending balance of $3,600. The company's Cash account in the general ledger showed a balance of $1,204 as of June 30, 2015.
Other information that may be relevant in preparing a bank reconciliation as of June 30, 2015, is as follows:
- The bank returned an NSF check from a customer of Rudder Scudder for $480. The check had been received from a customer for its payment of its outstanding account.
- Rudder Scudder recorded cash receipts of $340 on June 30, 2015, but this amount does not yet appear on the bank statement.
- A check written by Rudder Scudder and correctly paid by the bank for $1,740 was incorrectly recorded in the cash payments journal as $1,470. The check was a payment on an account to a vendor.
- Checks which were written in May 2015but still had not been presented to the bank for payment at June 30, 2015,amounted to $780.
- The bank included a credit to the company's bank account for $1,526, which represents a collection of a customer's note receivable by the bank on behalf ofRudder Scudder. The principalamount of the note was $1,400, whilethe remainder was interest.
- The bank charged the company's bank account$20 for services charges for the month of June.
- Checks which were writtenin June 2015which have not been paid by the bank as of June 30 amounted to $1,200.
QUESTIONS:
- Prepare a properly-formatted bank reconciliation for Rudder Scudder, Inc.,as of June 30, 2015.Since you are not able to present the bank reconciliation side-by-side, you may list the Bank side first, followedby the Book side. (5points)
- What journal entries are necessary to correct the books for Rudder Scudder, Inc.,as of June 30, 2015? (3 points)
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