Beeler Furniture Company deposits all cash receipts cach 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: $9,317.40 $9,223.76 Balance as of June 1 CASH RECEIPTS FOR MONTH OF JUNE DUPLICATE DEPOSITTICKETS: Date and amount of each deposit in June: Amount Date Date Amount Date Amount $ 996.61 $1,080.50 854.17 $ 897.34 June 10 June 1 June 22 15 882.95 24 947.21 840.50 17 1,606.74 30 1,117.74 CHECKS WRITTEN: Number and amount of each check issued in June: Check No. Check No. Amount Amount Check No. Amount 740 $ 449.75 $237.50 747 Void 754 272.75 741 495.15 748 $450.90 755 742 501.90 749 640.13 756 113.95 743 276.77 761.30 750 757 407.95 744 506.88 751 299.37 758 259.60 745 117.25 752 537.01 759 901.50 746 298.66 753 380.95 760 486.39 $8,395.66 Total amount of checks issued in June BANK RECONCILIATION FOR PRECEDING MONTH: Beeler Fumiture Company Bank Recondlation May 31 20Y2 $ 9,447.20 Cash balance according to bank statement.... Add deposit for May 31, not recorded by bank.. Deduct outstanding checks: 690.25 No. 731 $162.15 736 345.95 738 251.40 60.55 739 820.05 $ 9317.40 $ 9,352.50 Adjusted balance... Cash balance according to company's records Deduct bank service charges.. 35.10 $ 9317.40 Adjusted balance..... 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. 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 the 4. bank as $930. Briefly explain how the error would be included in a bank reconcilia- tion and how it should be corrected. JUNE BANK STATEMENT: PAGE MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF CHICAGO TO 8/30/20Y2 FROM 6/01/20Y2 CHICA GO, IL 60603 (312) 441-1239 BALANCE 9,447.20 9 DEPOSITS 8,891.77 20 WITHDRAWALS 7,899.28 BEELER FURNITURE COMPANY 4 OTHER DEBITS AND CREDITS 3,08B.00CR NEW BALANCE 13,824.71 .---ОНЕСКВ АND OTНER DEBITS - DEPOSITS ---- DATE - --- BALANOE--- No. 731 182.18 No. 736 345.98 890.28 8/01 9,829.35 вО, В 1,080.B0 No.739 No. 740 237.80 8/02 10,411.80 10,288.92 496.16 No.741 No.742 B01.90 854.17 8/04 No.743 No.745 No. 744 вое,88 871.30 840.80 8/09 9,931.24 13,018.33 M8 3,800.00 298.68 117.25 No.746 8/09 No. 749 No.748 450.90 210.00 840.13 мз 8/09 12,134.30 No. 781 No.780 278.77 299.37 вве.81 8/11 12,454.77 12,419.78 882.08 No. 782 B37.01 No.783 380.98 8/18 272.78 No.784 449.78 No.768 1,808.74 8/18 13,304.00 13,307.00 No.787 407.95 No.780 488.39 897.34 8/23 942.71 8/28 14,249.71 NSF B80.00 8/28 13,899.71 13,824.71 80 78.00 8/30 OVERDRAFT B0 - ERROR OORREOTION OD PS - PAYMENT STOPPED M8 - MISCELLANEOUS NSF - NOT SUFFICIENT FUNDS 8C- SERVICE CHARGE ... ... THE HECONOILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERHOR OR EXCEPTION SHOULD EE REPORTED IMMEDIATELY.
Beeler Furniture Company deposits all cash receipts cach 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: $9,317.40 $9,223.76 Balance as of June 1 CASH RECEIPTS FOR MONTH OF JUNE DUPLICATE DEPOSITTICKETS: Date and amount of each deposit in June: Amount Date Date Amount Date Amount $ 996.61 $1,080.50 854.17 $ 897.34 June 10 June 1 June 22 15 882.95 24 947.21 840.50 17 1,606.74 30 1,117.74 CHECKS WRITTEN: Number and amount of each check issued in June: Check No. Check No. Amount Amount Check No. Amount 740 $ 449.75 $237.50 747 Void 754 272.75 741 495.15 748 $450.90 755 742 501.90 749 640.13 756 113.95 743 276.77 761.30 750 757 407.95 744 506.88 751 299.37 758 259.60 745 117.25 752 537.01 759 901.50 746 298.66 753 380.95 760 486.39 $8,395.66 Total amount of checks issued in June BANK RECONCILIATION FOR PRECEDING MONTH: Beeler Fumiture Company Bank Recondlation May 31 20Y2 $ 9,447.20 Cash balance according to bank statement.... Add deposit for May 31, not recorded by bank.. Deduct outstanding checks: 690.25 No. 731 $162.15 736 345.95 738 251.40 60.55 739 820.05 $ 9317.40 $ 9,352.50 Adjusted balance... Cash balance according to company's records Deduct bank service charges.. 35.10 $ 9317.40 Adjusted balance..... 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. 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 the 4. bank as $930. Briefly explain how the error would be included in a bank reconcilia- tion and how it should be corrected. JUNE BANK STATEMENT: PAGE MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF CHICAGO TO 8/30/20Y2 FROM 6/01/20Y2 CHICA GO, IL 60603 (312) 441-1239 BALANCE 9,447.20 9 DEPOSITS 8,891.77 20 WITHDRAWALS 7,899.28 BEELER FURNITURE COMPANY 4 OTHER DEBITS AND CREDITS 3,08B.00CR NEW BALANCE 13,824.71 .---ОНЕСКВ АND OTНER DEBITS - DEPOSITS ---- DATE - --- BALANOE--- No. 731 182.18 No. 736 345.98 890.28 8/01 9,829.35 вО, В 1,080.B0 No.739 No. 740 237.80 8/02 10,411.80 10,288.92 496.16 No.741 No.742 B01.90 854.17 8/04 No.743 No.745 No. 744 вое,88 871.30 840.80 8/09 9,931.24 13,018.33 M8 3,800.00 298.68 117.25 No.746 8/09 No. 749 No.748 450.90 210.00 840.13 мз 8/09 12,134.30 No. 781 No.780 278.77 299.37 вве.81 8/11 12,454.77 12,419.78 882.08 No. 782 B37.01 No.783 380.98 8/18 272.78 No.784 449.78 No.768 1,808.74 8/18 13,304.00 13,307.00 No.787 407.95 No.780 488.39 897.34 8/23 942.71 8/28 14,249.71 NSF B80.00 8/28 13,899.71 13,824.71 80 78.00 8/30 OVERDRAFT B0 - ERROR OORREOTION OD PS - PAYMENT STOPPED M8 - MISCELLANEOUS NSF - NOT SUFFICIENT FUNDS 8C- SERVICE CHARGE ... ... THE HECONOILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERHOR OR EXCEPTION SHOULD EE REPORTED IMMEDIATELY.
Chapter1: Financial Statements And Business Decisions
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