Question
The following are the transactions of Capstone Corporation for the month ended June 30,2019. Reconcile the Bank and Book balances for the month ended June
The following are the transactions of Capstone Corporation for the month ended June 30,2019. Reconcile the Bank and Book balances for the month ended June 30,2019. Make sure you show all your workings, including accounting for each transaction rather than lump sum totals.
1. The balance in the bank statement of the corporation at June 30,2019 was $5,642
2. The balance in the corporations books at June 30,2019 was $8,314
3. The outstanding cheques at the end of the month were:
a) Cheque # 882: $2,660
b) Cheque # 876: $ 130
c) Cheque # 884: $ 860
d) Cheque # 886: $ 250
4. The bank put through a DM (Debit Memo) of $220 and service charge of $80 at June 29,2019
5. At end of the month, it was determined the following were the deposits-in-transit:
a) June 28,2019: $3,652
b) June 29,2019: $2,000
c) June 30,2019: $1,000
6. It was determined that Cheque # 876 was incorrectly recorded in error by the Corporation's Accountant, i.e. it was recorded in error as $150 whereas the correct amount was $130. When reconciling the Bank Statement, make sure you factor for this error.
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