Question
Shaolin Clothing received a bank statement from its Bank for the month June indicated a difference in balance between the bank statement with its own
Shaolin Clothing received a bank statement from its Bank for the month June indicated a difference in balance between the bank statement with its own ledger. The bank statement showed a balance per bank of $8,944 while its own Cash account in the general ledger had a balance of $7,360 at June 30. The instances that caused the difference were found as follows: 1. Cash receipts deposited for June 30 recorded on the company's books were $3,500 but this amount does not appear on the bank statement. 2. The bank statement shows a debit memorandum for $100 as charge for the printing of a 200-pages check book with the company logo. The bank statement also includes a credit memorandum of $200 interest earned on average account balance during the first half-year. 3. Check No. 163 amounted $2,500 deposited a day before the end of the month does not show on the bank statement. 4. Check No. 147 was still outstanding at receipt June 30 amounted to $5,800. 5. Check No. 258 was correctly written and paid by the bank for $628. However, in the ledger, Check No. 258 was debited to Accounts Payable and credited to Cash for $682. But check No. 493 was correctly issued and paid by the bank for $1,820, unfortunate in the ledger the check was debited to Notes Payable and credited to Cash for $1,280. 6. The bank returned an NSF check No. 167 from a customer for $980. 7. The bank included a credit memorandum for $3,150 which represents collection of a customer's note by the bank for the company; principal amount of the note was $3,000 and interest was $150. Interest has not been accrued.
a) Perform the bank reconciliation for Shaolin Clothing Company at June 30. b) Prepare any adjusting entries necessary as a result of the bank reconciliation in (a).
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