Question
The bank statement for Taylor Inc. shows an unadjusted balance of $2,330 at June 30, 2022, while the unadjusted cash balance per books was $599.
The bank statement for Taylor Inc. shows an unadjusted balance of $2,330 at June 30, 2022, while the unadjusted cash balance per books was $599. The following information pertains to the bank transactions for the company.
1. Deposits of $160, representing cash receipts of June 30, did not appear on the bank statement.
2. Outstanding cheques totalled $240.
3. Bank service charges for June were $9.
4. Electronic collections on account totalled $1,740, and have not yet been recorded by the company.
5. An NSF cheque for $80 from a customer was returned with the statement.
Instructions
(a) Prepare a bank reconciliation at June 30.
(b) Prepare any journal entries necessary as a result of the bank reconciliation.
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