Question
The cash account of Sweet Co. showed a ledger balance of $21,899.96on June 30, 2020. The bank statement as of that date showed a balance
The cash account of Sweet Co. showed a ledger balance of $21,899.96on June 30, 2020. The bank statement as of that date showed a balance of $23,240. Upon comparing the statement with the cash records, the following facts were determined.
1.There were bank service charges for June of $140.
2.A bank memo stated that Bao Dai's note for $6,720 and interest of $201.60 had been collected on June 29, and the bank had made a charge of $30.80 on the collection. (No entry had been made on Sweet's books when Bao Dai's note was sent to the bank for collection.)
3.Receipts for June 30 for $18,984 were not deposited until July 2.
4.Checks outstanding on June 30 totaled $11,961.88.
5.The bank had charged the Sweet Co.'s account for a customer's uncollectible check amounting to $1,417.92 on June 29.
6.A customer's check for $504 (as payment on the customer's Accounts Receivable) had been entered as $336 in the cash receipts journal by Sweet on June 15.
7.Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $325.92 had been entered as $3,259.20. Both checks had been issued to pay for purchases and were payments on Sweet's Accounts Payable.
A-Prepare bank reconciliation dated June 30, 2020, proceeding to a correct cash balance.
B-Prepare entries necessary to make the books correct and complete. Use Office Expense account for bank service charges.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started