1. Deposits in transit on June 30 total $2,600. 2. The bank statement shows a debit memorandum for a check printing charge of $20. 3. Check number 160 payable to Simon Company was recorded in the accounting records for $124 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $18 credit balance and the have been $142. 4. Outstanding checks as of June 30 totaled $2,900. 5. Check No. 176 was correctly written and paid by the bank for $203. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $245. 6. The bank returned a NSF check in the amount of $342. 7. The bank included a credit memorandum for $630 representing a collection of a customer's note. The principle portion was $600 and the interest portion was $30. The interest had not been accrued. Required . Prepare the June bank reconciliation for Chicago Scooter Company. Prepare any necessary adjusting entries. Bank reconciliation Journal entries Date une 30 GENERAL JOURNAL Description ÷ To corrort chork orror in recording chock No. 176 S Debit S Credit
1. Deposits in transit on June 30 total $2,600. 2. The bank statement shows a debit memorandum for a check printing charge of $20. 3. Check number 160 payable to Simon Company was recorded in the accounting records for $124 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $18 credit balance and the have been $142. 4. Outstanding checks as of June 30 totaled $2,900. 5. Check No. 176 was correctly written and paid by the bank for $203. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $245. 6. The bank returned a NSF check in the amount of $342. 7. The bank included a credit memorandum for $630 representing a collection of a customer's note. The principle portion was $600 and the interest portion was $30. The interest had not been accrued. Required . Prepare the June bank reconciliation for Chicago Scooter Company. Prepare any necessary adjusting entries. Bank reconciliation Journal entries Date une 30 GENERAL JOURNAL Description ÷ To corrort chork orror in recording chock No. 176 S Debit S Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June indicated a balance of $3,500. The company's cash account in the general ledger showed a balance of $2,890 on June 30. Other relevant information includes the following:
1. Deposits in transit on June 30 total $2,600.
2. The bank statement shows a debit memorandum for a check printing charge of $20.
3. Check number 160 payable to Simon Company was recorded in the accounting records for $124 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $18 credit balance and the check to them should
have been $142.
4. Outstanding checks as of June 30 totaled $2,900.
5. Check No. 176 was correctly written and paid by the bank for $203. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $245.
6. The bank returned a NSF check in the amount of $342.
7. The bank included a credit memorandum for $630 representing a collection of a customer's note. The principle portion was $600 and the interest portion was $30. The interest had not been accrued.
Required
a. Prepare the June bank reconciliation for Chicago Scooter Company.
b. Prepare any necessary adjusting entries.
Bank reconciliation
Date
June 30
30
Journal entries
30
◆
◆
To correct check error in recording check No. 176.
30
GENERAL JOURNAL
Description
Interest Earned
To record note collection by bank.
To record check printing charge.
To record NSF check.
◆
◆
◆
◆
$
Debit
$
Credit
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