Question
The cash transactions and cash balances of Juno Company for July 2018 were as follows: 1 The ledger account for cash showed a balance of
The cash transactions and cash balances of Juno Company for July 2018 were as follows:
1 The ledger account for cash showed a balance of $125,868 at 31 July.
2 The July bank statement showed a closing balance of $115,128.
3 Cash received on 31 July amounted to $16,000. It was left at the bank in the night depository box after banking hours on 31 July and therefore was not recorded by the bank in the July statement.
4 Also included with the July bank statement was a debit memorandum from the bank for $50 representing service charges for July.
5 A credit memorandum enclosed with the July bank statement indicated that a non-interest-bearing note receivable for $4,000 from Mark Lee, left with the bank for collection, had been collected and the proceeds credited to the account of Juno Company.
6 A comparison of the accounting records with the bank statement revealed that cheque number 821 for $519, issued on 15 July in payment for office equipment, had been erroneously recorded in Juno Companys records as $915.
7 Examination of the paid cheques also revealed that three cheques, all issued in July, had not yet been paid by the bank: number 811 for $314; number 814 for $625; and number 823 for $175.
8 Included with the July bank statement was a $200 cheque drawn by William Ho, a customer of Juno Company. This cheque was marked NSF. It had been included in the deposit of 27 July but had been charged back by the bank against the companys account on 31 July.
Required
1?Prepare a bank reconciliation for Juno Company at 31 July 2018.
2?Prepare journal entries (in general journal form) to adjust the accounts at 31 July 2018. Assume that the accounts have not been closed.
3?State the amount of cash that should be included in the statement of the financial position at 31 July 2018.
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