Date 2020 June 1 1 3 3 8 9 13 20 28 28 Date May 31 June 1 6 8 9 10 10 14 20 23 28 30 GENERAL LEDGER-COOKIE CREATIONS Cash Explanation Ref. Balance Check #600 Check #601 Check #602 Check #603 Check #604 Additional information: Explanation Balance Deposit Check #600 Check #601 Check #602 Deposit NSF check NSF - fee Check #603 Deposit EFT-Telus Debit Check #599 Bank charges 1,050 750 625 95 56 100 35 452 155 PREMIER BANK Statement of Account-Cookie Creations June 30, 2020 85 361 13 110 Credit Checks and Deposits 750 625 95 56 1,050 425 125 297 Balance 2,657 3,407 2,782 2,687 2,631 3,681 3,256 3,411 3,114 3,224 Balance 3,256 4,066 3,381 3,286 3,230 4,280 4,145 3,693 3,818 3,733 3,372 3,359 1. On May 31, there were two outstanding checks: # 595 for $238 and # 599 for $361. 2. Premier Bank made a posting error to the bank statement: check #603 was issued for $425, not $452.
Date 2020 June 1 1 3 3 8 9 13 20 28 28 Date May 31 June 1 6 8 9 10 10 14 20 23 28 30 GENERAL LEDGER-COOKIE CREATIONS Cash Explanation Ref. Balance Check #600 Check #601 Check #602 Check #603 Check #604 Additional information: Explanation Balance Deposit Check #600 Check #601 Check #602 Deposit NSF check NSF - fee Check #603 Deposit EFT-Telus Debit Check #599 Bank charges 1,050 750 625 95 56 100 35 452 155 PREMIER BANK Statement of Account-Cookie Creations June 30, 2020 85 361 13 110 Credit Checks and Deposits 750 625 95 56 1,050 425 125 297 Balance 2,657 3,407 2,782 2,687 2,631 3,681 3,256 3,411 3,114 3,224 Balance 3,256 4,066 3,381 3,286 3,230 4,280 4,145 3,693 3,818 3,733 3,372 3,359 1. On May 31, there were two outstanding checks: # 595 for $238 and # 599 for $361. 2. Premier Bank made a posting error to the bank statement: check #603 was issued for $425, not $452.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Natalie decides that she cannot afford to hire John to do her accounting. One way that
she can ensure that her cash account does not have any errors and is accurate and upto-date is to prepare a bank reconciliation at the end of each month.
Natalie would like you to help her. She asks you to prepare a bank reconciliation for
June 2020 using the following information.
Transcribed Image Text:Date
2020
June 1
1
3
3
8
9
13
20
28
28
Date
May 31
June 1
6
6
8
9
10
10
14
20
23
28
30
GENERAL LEDGER-COOKIE CREATIONS
Cash
Explanation Ref.
Balance
Check #600
Check #601
Check #602
Check #603
Check #604
Explanation
Balance
Deposit
Check #600
Check #601
Check #602
Deposit
NSF check
NSF - fee
Check #603
Deposit
EFT-Telus
Debit
Check #599
Bank
charges
1,050
750
625
95
56
100
35
452
155
PREMIER BANK
Statement of Account-Cookie Creations
June 30, 2020
Checks and
85
361
13
110
Credit
750
625
95
56
1,050
425
Deposits
125
297
Balance
2,657
3,407
2,782
2,687
2,631
3,681
3,256
3,411
3,114
3,224
Balance
3,256
4,066
3,381
3,286
3,230
4,280
4,145
3,693
3,818
3,733
3,372
3,359
Additional information:
1. On May 31, there were two outstanding checks: #595 for $238 and #599 for $361.
2. Premier Bank made a posting error to the bank statement: check #603 was issued
for $425, not $452.
Transcribed Image Text:3. The deposit made on June 20 was for $125 that Natalie received for teaching a class.
Natalie made an error in recording this transaction.
4. The electronic funds transfer (EFT) was for Natalie's cellphone use. Remember that she
uses this phone only for business.
5. The NSF check was from Ron Black. Natalie received this check for teaching a class to
Ron's children. Natalie contacted Ron, and he assured her that she will receive a check
in the mail for the outstanding amount of the invoice and the NSF bank charge.
Instructions
(a) Prepare Cookie Creations' bank reconciliation for June 30.
(b) Prepare any necessary adjusting entries at June 30.
(c) If a balance sheet is prepared for Cookie Creations at June 30, what balance will be
reported as cash in the current assets section?
Example -
(Required)
Cash Balance as per Bank Statement
Add: Deposits in Transit
Less: O/s checks
No. XXX
Adjusted cash balance as per Bank
Counter none
XXX Company
Bank
XXXX, 20XX
conciliation
XXX
XXX
XXX
XXX
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