Question
View Policies Current Attempt in Progress Ivanhoe Spa shows a general ledger balance for the Cash account of $4,051.85 on June 30 and the
View Policies Current Attempt in Progress Ivanhoe Spa shows a general ledger balance for the Cash account of $4,051.85 on June 30 and the bank statement as of that date indicates a balance of $4,170.00. When the statement was compared with the cash records, the following facts were determined: 1. There were bank service charges for June of $33.00. 2. A bank memo stated that Michael Brown's note for $904.00 and interest of $44.00 had been collected on June 29, and the bank had charged $3.50 for the collection. Any interest revenue has not been accrued. 3. Deposits in transit June 30 were $2,902.00. 4. Cheques outstanding on June 30 totalled $2.128.05. 5. On June 29, the bank had charged Ivanhoe Spa's account for a customer's NSF cheque amounting to $465.20. 6. 7. 8. A customer's cheque received as a payment on account of $94.00 had been entered as $64.00 in the cash receipts journal by Ivanhoe Spa on June 15. Cheque no. 742 in the amount of $495.00 had been entered in the books as $459.00, and cheque no. 747 in the amount of $50.20 had been entered as $502.00, Both cheques were issued as payments on account In May, the bank had charged a $23.50 Wella Spa cheque against the Ivanhoe Spa account. The June bank statement indicated that the bank had reversed this charge and corrected its error. Prepare a bank reconciliation at June 30. (List items that increase balance as per bank & books first) Ivanhoe Spa
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