You recently started work in the accounting department at MM Industries. Your first task is to reconcile the bank statement as at June 30, 2015. You have been provided with the required information to reconcile the bank statement, and you notice that the date of the previous bank reconciliation is April 30.

JUNE BANK STATEMENT:

MAY BANK STATEMENT:

CASH ACCOUNT TRANSACTIONS FOR MAY AND JUNE:

GL Account: CASH IN BANK 1040

For the period of MAY-01-15 to JUN-30-15

PRECEDING BANK RECONCILIATION (DATED APRIL 30):

Requirements:

1. Prepare a bank reconciliation as at June 30, 2015. Assume that any errors in recording deposits were made by the company and any errors in recording cheques were made by the bank.

2. Journalize any necessary entries.

3. What should be the balance of the Cash Account at June 30, 2015?

Transcribed Image Text:

EXAMPLE BANK Statement of Account Account Type Statement From To 7043159-00 Business JUN 01/15 JUN 30/15 DESCRIPTION DATE WITHDRAWALS I DEPOSITS BALANCE BALANCE FORWARD MAY 31 DEPOSIT DEPOST CHO 567 CHO 574 CHO 582 CHO 584 CHO 583 DEPOST DEPOST EFT CHO 586 CHO 587 DEPOST DEPOST DEPOSI DEPOSI EFT Service Charge JUN 01 JUN 04 JUN 04 JUN 04 JUN 04 JUN 06 JUN 07 JUN 07 JUN 11 JUN 15 JUN 15 JUN 18 JUN 18 JUN 21 JUN 25 JUN 28 JUN 29 JUN 29 8,484.86 11,366.12 13,092.72 12,807.39 12,514.89 12,048.66 11,087.67 9,045.61 12,527.02 13,352.21 8,104.96 6,371.48 6,166.83 8,639.34 9,378.30 0,150.99 2,460.78 6,813.73 6,750.73 2,881.26 1,726.60 285.33 292.50 466.23 960.99 2,042.08 3,481.41 825.19 5,247.25 1,733.48 204.65 2,472.51 738.96 772.69 2,309.79 5,647.05 63.00 16,942.54 15,208.41 EXAMPLE BANK Statement of Account Account Type Statement From To 7043159-00 Business MAY 01/15 MAY 31/15 DESCRIPTION DATE APR 30 MAY 01 MAY 01 MAY 01 MAY 01 MAY 02 MAY 03 MAY 07 MAY 07 MAY 10 MAY 11 MAY 14 MAY 15 MAY 15 MAY 15 MAY 15 MAY 17 MAY 21 MAY 24 MAY 25 MAY 25 MAY 28 MAY 31 MAY 31 WITHDRAWALS DEPOSITS BALANCE BALANCE FORWARD CHO 563 CHO 571 CHO 572 DEPOSIT CHO 573 DEPOSIT NSF DEPOSIT DEPOSIT CHO 575 DEPOSIT CHO 576 CHO 578 CHO 579 7,257.00 6,929.68 6,516.10 4,498.76 11,047.89 10,375.24 14,119.29 13,783.88 14,396.97 16,997.15 16,786.25 17,879.81 16,121.92 15,348.73 14,686.65 8,979.58 13,529.14 14,264.20 15,364.75 13,928.26 13,834.90 14,213.14 8,547.86 8,484.86 327.32 413.58 2,017.34 6,549.13 672.65 3,744.05 335.41 613.09 2,600.18 210.90 893.56 1,557.89 773.19 662.08 5,707.07 DEPOSIT DEPOSIT DEPOSIT CHO 577 CHa 580 DEPOSIT 4,549.56 735.06 1,100.55 1,436.49 93.38 378.24 5,665.28 63.00 19,935.56 Service Charge 21,163.42 DATE REFERENCE DEBIT CREDIT BALANCE Dr. (Cr.) Opening Balance MAY 1 613.09 2,600.18 MAY 11 MAY 15 8 4,549.56 1,100.55 378.24 3 2,881.26 MAY 31 726.60 3,491.41 JUN 15 1,733.49 5,247.25 2,472.51 738.98 JUN 20 30721 JUN 22 JUN 27 JUN 29 772.69 2,309.79 5,64705 28,822.70 36,234.31 8 Cash balance according to bank statement Add deposit of April 30 not recorded by bank S 7, 257.00 6549 13 13,806.13 Deduct outstanding cheques: No. 563 567 571 $327.32 285.33 413.58 1,026.23 $12,779.90 Adjusted balance Cash balance according to company's records Deduct: Service charges Adjusted balance $12,842.90 63.00 $12.779.90