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a. Prepare a bank reconciliation at June 30. b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation

a. Prepare a bank reconciliation at June 30. b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required a. Prepare a bank reconciliation at June 30. b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation.
Problem 7-6B Preparing a bank reconcillation and recording adjustments LO6 CHECK FIGURE: a. Adjusted book balance = $13,929 The bank reconciliation prepared by Village-on-the-Lake Condos on May 31, 2020, is shown below: Village-on-the-Lake Condos Bank Reconciliation Мay 31, 2020 Bank statement balance.. $ 2,060 Book balance. $3,910 Add: Deposit of May 31 in transit. 12.500 $14,560 Deduct: Outstanding cheques: # 103. $6,520 #120. 4,130 10.650 Adjusted bank balance.. $ 3,910 Adjusted book balance. $3,910 ................... The Cash account in the general ledger appeared as follows on June 30: Page 528 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 May 31 Balance 3,910 June 30 CR21 38,680 42,590 30 CD16 31,861 10,729 A list of deposits made and cheques written during June, taken from the cash receipts journal and cash disbursements journal, is shown below: Deposits Made Cheques Written June 5.. $ 590 No. 127. $ 2,100 10.. 1,120 128. 450 15. 5,690 129 680 20 4,510 130, 9,750 27. 7,830 131. 196 30. 12,600 132, 6,420 30. 6,340 133. 4,550 Total June Cash Receipts. . $38,680 6,780 134. 135. 820 136. 115 Total June Cash Disbursements. $31,861
Transcribed Image Text:Problem 7-6B Preparing a bank reconcillation and recording adjustments LO6 CHECK FIGURE: a. Adjusted book balance = $13,929 The bank reconciliation prepared by Village-on-the-Lake Condos on May 31, 2020, is shown below: Village-on-the-Lake Condos Bank Reconciliation Мay 31, 2020 Bank statement balance.. $ 2,060 Book balance. $3,910 Add: Deposit of May 31 in transit. 12.500 $14,560 Deduct: Outstanding cheques: # 103. $6,520 #120. 4,130 10.650 Adjusted bank balance.. $ 3,910 Adjusted book balance. $3,910 ................... The Cash account in the general ledger appeared as follows on June 30: Page 528 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 May 31 Balance 3,910 June 30 CR21 38,680 42,590 30 CD16 31,861 10,729 A list of deposits made and cheques written during June, taken from the cash receipts journal and cash disbursements journal, is shown below: Deposits Made Cheques Written June 5.. $ 590 No. 127. $ 2,100 10.. 1,120 128. 450 15. 5,690 129 680 20 4,510 130, 9,750 27. 7,830 131. 196 30. 12,600 132, 6,420 30. 6,340 133. 4,550 Total June Cash Receipts. . $38,680 6,780 134. 135. 820 136. 115 Total June Cash Disbursements. $31,861
The following bank statement is available for June: Bank Statement June 30, 2020 To: Village-on-the-Lake Condos Bank of Nova Scotia Cheques/Charges Deposits/Credits Balance 2,060 #133 06/02 4,550 06/02 12,500 10,010 #136 06/05 115 06/05 590 10,485 #129 06/10 680 06/10 1,120 10,925 #130 06/15 9,750 06/15 5,690 6,865 #103 06/20 6,520 06/20 4,510 4,855 #134 06/27 6,780 06/27 7,830 5,905 #128 06/30 450 06/30 16,200 21,655 SC 06/30 400 21,255 NSF = Not Sufficient SC = Service PMT = Principal INT = Interest Funds Charge Payment In reviewing deposits recorded by the bank, the bookkeeper discovered that the deposit from customer Darla Smith dated June= 30, recorded in the cash receipts journal incorrectly as $12,600, was recorded by the bank correctly as $16,200. Page 529 Required a. Prepare a bank reconciliation at June 30. b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation.
Transcribed Image Text:The following bank statement is available for June: Bank Statement June 30, 2020 To: Village-on-the-Lake Condos Bank of Nova Scotia Cheques/Charges Deposits/Credits Balance 2,060 #133 06/02 4,550 06/02 12,500 10,010 #136 06/05 115 06/05 590 10,485 #129 06/10 680 06/10 1,120 10,925 #130 06/15 9,750 06/15 5,690 6,865 #103 06/20 6,520 06/20 4,510 4,855 #134 06/27 6,780 06/27 7,830 5,905 #128 06/30 450 06/30 16,200 21,655 SC 06/30 400 21,255 NSF = Not Sufficient SC = Service PMT = Principal INT = Interest Funds Charge Payment In reviewing deposits recorded by the bank, the bookkeeper discovered that the deposit from customer Darla Smith dated June= 30, recorded in the cash receipts journal incorrectly as $12,600, was recorded by the bank correctly as $16,200. Page 529 Required a. Prepare a bank reconciliation at June 30. b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation.
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