• Suggestions:

1. Take a few minutes to look through the information provided: Information for books, last month's bank reconciliation, and the bank statement.
2. Create a T-Account to determine the amount of Cash as of 6/30/Y2.
3. Set up your bank reconciliation template.
4. Fill in the Bank Balance and Book Balance.
5. Have the Outstanding checks from last month cleared on the Bank Statement?
6. Has all the activity recorded in the Books reflected in the Bank Statement?
7. Pay attention to the numbers. Were there any errors by the Bank or the Books (Accountants) or anything missing?

Instructions:

• Prepare a Bank Reconciliation as of June 30, 20Y2. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume all deposits are from cash sales. All checks are written to satisfy Accounts Payable.
• Note that the 6/9 deposits for $3,500 and $210 on the Bank Statement are for Notes Receivable and interest earned that was paid directly to the bank and into the company's account.
• Prepare the necessary journal entries. Please make one combined journal entry for all of the additions and another combined journal entry for all of the deductions.

Accounting 1A Chapter 7 - Cash and Internal Controls Bank Reconciliation Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30, 20Y2, have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account. CASH ACCOUNT: Balance as of June $9,317.40 CASH RECEIPTS FOR MONTH OF JUNE 9.223.76 DUPLICATE DEPOSIT TICKETS Date and amount of each deposit in June: Date Amount Date Amount Date Amount June 1 $1,080.50 June 10 5 996 61 June 228 897.34 3 854.171 IS 882.95 24 947.211 840.50 17 1.606.74 301.117.74 CHECKS WRITTEN: Number and amount of each check issued in June: 748 Check No. Amount Check No. Amount Check No. Amount 740 S237.50 747 Void 754 S449.75 741 495.15 S450.90 755 272.75 742 301.90 749 640.13 756 113.95 743 761.30 750 276.771 757 407.95 744 506.88 751 299.37 758 259.60 745 117.25 752 537.01 759 901.50 746 298.66 753 380.95 760 486.39 Total amount of checks issued in June $8.395.66 BANK RECONCILIATION FOR PRECEDING MONTH: 59.447.20 690.25 Beeler Furniture Company Bank Reconciliation May 31, 2012 Cash balance according to bank statement.... Add: Deposit in transit on May 31... Deduct Outstanding Check No. 731. Outstanding Check No. 736 Outstanding Check No. 738 Outstanding Check No. 739 Total deductions... Adjusted balance... $162.15 34595 25140 60 55 82005 $931740 Cash balance according to company's records Deduct: Bank service charges Adjusted balance..... $9352.50 (35.10) $9,31740 MEMBER FDIC PAGE 1 AMERICAN NATIONAL BANK ACCOUNT NUMBER OF CHICAGO FROM B/01/2012 TO 6/30/2012 CHICAGO, IL 60603 (312) 441-1239 BALANCE 9,447.20 9 DEPOSITS 8,601.77 20 WITHDRAWALS 7,599.28 BEELER FURNITURE COMPANY 4 OTHER DEBITS AND CREDITS 3,085.00CR NEW BALANCE 13,624.71 --- CHECKS AND OTHER DEBITS --- -- DEPOSITS --:-DATE --- ---BALANCE--- No. 731 162.18 No. 738 345.96 690.25 6/01 9,629.36 No. 739 80.86 No. 740 237.50 1,080.50 6/02 10,411.80 No. 741 495.16 No. 742 501.90 884.17 6/04 10.268.92 No. 743 671.30 No. 744 508.88 840.50 6/09 9.931.24 No. 745 117.26 No. 748 298.86 MS 3,500.00 6/09 13,018.33 No. 748 480.90 No. 749 840.13 MS 210.00 6/09 12,134.30 No. 780 278.77 No. 781 299.37 896.81 6/11 12,454.77 No. 782 537.01 No. 783 380.95 882.98 6/16 12,419.76 No. 784 449.75 No. 788 272.78 1,808.74 8/18 13,304.00 No. 787 407.96 No. 760 488.30 897.34 8/23 13,307.00 942.71 6/25 14,249.71 NSP 550.00 8/28 13,699.71 SC 76.00 6/30 13,624.71 BC - ERROR CORRECTION OD - OVERDRAFT MS - MISCELLANEOUS PS - PAYMENT STOPPED NSF - NOT SUFFICIENT FUNDS SC - SERVICE CHARGE THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY