2. Journalize the necessary entries. The accounts have not been closed. 3. What is the amount of Cash that should appear on the balance sheet as of June 30 Assume that a canceled check for $390 has been incorrectly recorded by t bank as $930. Briefly explain how the error would be included in a bank reconciliati 4. and how it should be corrected. JUNE BANK STATEMENT: AB CHICAGO, IL 60603 MEMBER FDIC AMERICAN NATIONAL BANK OF CHICAGO *--- BEELER FURNITURE COMPANY (312) 441-1239 CHECKS AND OTHER DEBITS No.731 No.736 No.739 No.740 No.741 495.15 No.742 No.743 671.30 No.744 No.745 117.25 No.746 No.748 450.90 No.749 No.750 276.77 No.751 No.752 537.01 No.753 No.754 449.75 No.755 No.757 407.95 No.760 162.15 60.55 345.95 237.50 501.90 506.88 298.66 640.13 299.37 380.95 272.75 486.39 NSF 550.00 SC 75.00 EC-ERROR CORRECTION MS- MISCELLANEOUS NSF - NOT SUFFICIENT FUNDS ** ACCOUNT NUMBER FROM 6/01/20Y2 BALANCE 9 DEPOSITS 20 WITHDRAWALS 4 OTHER DEBITS AND CREDITS NEW BALANCE 690.25 1,080.50 854.17 V 840.50 MS 3,500.00 MS 210.00 896.61 13,624.71 QURUG DEPOSITS ---DATE ---BALANCE--. 882.956/16 1,606.74 ✓ 897.34 942.71 6/01 6/02 6/04 6/09 6/09 6/09 6/11 OD 6/18 6/23 6/25 6/28 6/30 PAGE TO 6/30/20Y2 - OVERDRAFT 9,447.20 8,691.77 7,599.26 3,085.00CR 9,629.35 10,411.80 10,268.92 9,931.24 13,015.33 12,134.30 12,454.77 12,419.76 13,304.00 13,307.00 14,249.71 13,699.71 13,624.71 PS-PAYMENT STOPPED SC SERVICE CHARGE 1 THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.
2. Journalize the necessary entries. The accounts have not been closed. 3. What is the amount of Cash that should appear on the balance sheet as of June 30 Assume that a canceled check for $390 has been incorrectly recorded by t bank as $930. Briefly explain how the error would be included in a bank reconciliati 4. and how it should be corrected. JUNE BANK STATEMENT: AB CHICAGO, IL 60603 MEMBER FDIC AMERICAN NATIONAL BANK OF CHICAGO *--- BEELER FURNITURE COMPANY (312) 441-1239 CHECKS AND OTHER DEBITS No.731 No.736 No.739 No.740 No.741 495.15 No.742 No.743 671.30 No.744 No.745 117.25 No.746 No.748 450.90 No.749 No.750 276.77 No.751 No.752 537.01 No.753 No.754 449.75 No.755 No.757 407.95 No.760 162.15 60.55 345.95 237.50 501.90 506.88 298.66 640.13 299.37 380.95 272.75 486.39 NSF 550.00 SC 75.00 EC-ERROR CORRECTION MS- MISCELLANEOUS NSF - NOT SUFFICIENT FUNDS ** ACCOUNT NUMBER FROM 6/01/20Y2 BALANCE 9 DEPOSITS 20 WITHDRAWALS 4 OTHER DEBITS AND CREDITS NEW BALANCE 690.25 1,080.50 854.17 V 840.50 MS 3,500.00 MS 210.00 896.61 13,624.71 QURUG DEPOSITS ---DATE ---BALANCE--. 882.956/16 1,606.74 ✓ 897.34 942.71 6/01 6/02 6/04 6/09 6/09 6/09 6/11 OD 6/18 6/23 6/25 6/28 6/30 PAGE TO 6/30/20Y2 - OVERDRAFT 9,447.20 8,691.77 7,599.26 3,085.00CR 9,629.35 10,411.80 10,268.92 9,931.24 13,015.33 12,134.30 12,454.77 12,419.76 13,304.00 13,307.00 14,249.71 13,699.71 13,624.71 PS-PAYMENT STOPPED SC SERVICE CHARGE 1 THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Only #4
Transcribed Image Text:2. Journalize the necessary entries. The accounts have not been closed.
3. What is the amount of Cash that should appear on the balance sheet as of June 30
Assume that a canceled check for $390 has been incorrectly recorded by th
bank as $930. Briefly explain how the error would be included in a bank reconciliatio
4.
and how it should be corrected.
JUNE BANK STATEMENT:
AB
CHICAGO, IL 60603
AMERICAN NATIONAL BANK
OF CHICAGO
MEMBER FDIC
BEELER FURNITURE COMPANY
No.731
162.15
No.739
60.55
No.741
495.15
No.743
671.30
No.745
117.25
No.748 450.90
No.750 276.77
No.752 537.01
No.754
449.75
No.757 407.95
(312) 441-1239
- CHECKS AND OTHER DEBITS -
No.736
No.740
No.742
No.744
No.746
No.749
No.751
No.753
No.755
No.760
-
345.95
237.50
501.90
506.88
298.66
640.13
299.37
380.95
272.75
486.39
NSF 550.00
SC
75.00
EC-ERROR CORRECTION
MS-MISCELLANEOUS
NSF NOT SUFFICIENT FUNDS
ACCOUNT NUMBER
FROM 6/01/20Y2
BALANCE
9 DEPOSITS
20 WITHDRAWALS
4 OTHER DEBITS
AND CREDITS
NEW BALANCE
690.25
1,080.50
- DEPOSITS - - * - DATE -
6/01
6/02
6/04
6/09
6/09
6/09
896.61 26/11
882.95 ✓ 6/16
6/18
6/23
6/25
6/28
6/30
OVERDRAFT
854.17 V
840.50 ✓
MS 3,500.00
MS 210.00
1,606.74 ✓
897.34
942.71
OD-
qub
08
-
PAGE 1
TO 6/30/20Y2
9,447.20
8,691.77
7,599.26
3,085.00CR
13,624.71
- BALANCE-- *
9,629.35
10,411.80
10,268.92
9,931.24
13,015.33
12,134.30
12,454.77
12,419.76
13,304.00
13,307.00
14,249.71
13,699.71
13,624.71
PS-PAYMENT STOFPED
SC-SERVICE CHARGE
THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL.
ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.
Transcribed Image Text:PR 8-5A Bank reconciliation and entries
OBJ.S
Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night
depository after banking hours. The data required to reconcile the bank statement as of June
30 have been taken from various documents and records and are reproduced as follows. The
sources of the data are printed in capital letters. All checks were written for payments on account.
CASH ACCOUNT:
Balance as of June 1
CASH RECEIPTS FOR MONTH OF JUNE
DUPLICATE DEPOSIT TICKETS:
Date and amount of each deposit in June:
Date
June 1
3
8
Amount
$1,080.50 ✓
854.17
840.50✔
Check No.
740 v
741
742 ✔
743✓
Date
June 10
15
17
CHECKS WRITTEN:
Number and amount of each check issued in June:
Amount
$237.50
495.15
501.90
761.30
744 ✓
506.88
745
117.25
746✓
298.66
Total amount of checks issued in June
BANK RECONCILIATION FOR PRECEDING MONTH:
Check No.
747
748
749 V
750-
751 v
752 v
753
Cash balance according to bank statement...
Add deposit for May 31, not recorded by bank
Deduct outstanding checks:
No. 731.....
736....
738....
739....
Amount
$ 996.61 ✔
882.95
1,606.74
Beeler Furniture Company
Bank Reconciliation
May 31, 20Y2
Adjusted balance
Cash balance according to company's records..
Deduct bank service charges.....
Adjusted balance....
Amount
Void
$450.90
640.13
276.77
299.37
537.01
380.95
Date
June 22
24
30
Check No.
754
755 v
756
757V
758
759
760 V
$9,317.40
$9,223.76
$162.15
345.95
251.40
60.55
Amount
$ 897.34 V
947.21
1,117.74
Amount
$ 449.75
272.75
113.95
407.95
259.60
901.50
486.39
$8,395.66
$9,447.20
192:2meldo 690.2
(820.05)
$9,317.40
$9,352.50
(35.10)
$9,317.40
Instructions
1. Prepare a bank reconciliation as of June 30, 20Y2. If errors in recording deposits or
checks are discovered, assume that the errors were made by the company. Assume that
all deposits are from cash sales. All checks are written to satisfy accounts payable.
(Continued)
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