Bank reconciliation and entriesBeeler 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 reproducedmas 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$9,317.40CASH RECEIPTS FOR MONTH OF JUNE $9,223.76DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June: Beeler Furniture Company Bank Reconciliation May 31 20Y2Cash balance according to bank statement $ 9,447.20Add deposit for May 31, not recorded by bank 690.25Deduct outstanding checks: No. 731$162.15 736345.95 738251.40 73960.55 820.05Adjusted balance $ 9,317.40Cash balance according to company's records $ 9,352.50Deduct bank service charges 35.10Adjusted balance $ 9,317.40Instructions1. 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. 1he accounts have not been closed.3. What is the amount of Cash that should appear on the balance sheet as of June 30?4. Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected.JUNE BANK STATEMENT: DateAmountDateAmountDateAmountJune 1$1,080.50June 10$ 996.61June 22$ 897.343854.1715882.9524947.218840.50171,606.74301,117.74CHECKS WRITTEN:Number and amount of each check issued in June:Check No.AmountCheck No.AmountCheck No.Amount740$237.50747Void754$ 449.75741495.15748$450.90755272.75742501.90749640.13756113.95743761.30750276.77757407.95744506.88751299.37758259.60745117.25752537.01759901.50746298.66753380.95760486.39Total amount of checks issued in June$8,395.66BANK RECONCILIATION FOR PRECEDING MONTH: PAGE 1MEMBER FDICACCOUNT NUMBERAMERICAN NATIONAL BANKOF CHICAGOFROM 8/01/20Y2 TO 6/30/20Y2CHICAGO, IL 60603 (312) 441-1239BALANCE9,447.209 DEPOSITS8,691.7720 WITHDRAWALS7,699.28BEELER FURNITURE COMPANY4 OTHER DEBITSAND CREDITS3,085.00CRNEW BALANCE13,624.71CHECKS AND OTHER DEBITS -- DEPOSITS –-. - DATE –-- BALANCE-- .No.731162.18No.736345.95690.256/019,629.35No.73960.88No.740237.601,080.806/0210,411.80No.741496.15No.748801.90854.176/0410,888.98No.743671.30No.744506.88840.506/099,931.24No.748117.25No.746298.66 MS 3,800.006/0913,015.33No.748450.90No.749840.13M3 810.006/0912,134.30No.750276.77No. 751299.37896.616/1112,454.77No.752637.01No.763380.95882.956/1612,419.76No.754449.75No.755272.751,608.746/1813,304.00No.757407.95No.760486.39897.346/2313,307.00942.716/2514,249.71NSF 550.006/2813,699.71sc75.006/3013,824.71EC – KRROR CORRECTIONOD – OVERDRAFTMS – MISCELLANEOUSPS – PAYMENT STOPPEDNSF – NOT SUFFICIENT FUNDSSC – SERVICE CHARGETHE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL.ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.

Answer 1. BEELER FURNITURE COMPANY Bank Recocilation JUNE 30, 20Y2…

Date Amount Date Amount Date Amount June 1 $1,080.50 June 10 $ 996.61 June 22 $ 897.34 3 854.17 15 882.95 24 947.21 8 840.50 17 1,606.74 30 1,117.74 CHECKS WRITTEN: Number and amount of each check issued in June: Check No. Amount Check No. Amount Check No. Amount 740 $237.50 747 Void 754 $ 449.75 741 495.15 748 $450.90 755 272.75 742 501.90 749 640.13 756 113.95 743 761.30 750 276.77 757 407.95 744 506.88 751 299.37 758 259.60 745 117.25 752 537.01 759 901.50 746 298.66 753 380.95 760 486.39 Total amount of checks issued in June $8,395.66 BANK RECONCILIATION FOR PRECEDING MONTH: PAGE 1 MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF CHICAGO FROM 8/01/20Y2 TO 6/30/20Y2 CHICAGO, IL 60603 (312) 441-1239 BALANCE 9,447.20 9 DEPOSITS 8,691.77 20 WITHDRAWALS 7,699.28 BEELER FURNITURE COMPANY 4 OTHER DEBITS AND CREDITS 3,085.00CR NEW BALANCE 13,624.71 CHECKS AND OTHER DEBITS - - DEPOSITS –-. - DATE –-- BALANCE-- . No.731 162.18 No.736 345.95 690.25 6/01 9,629.35 No.739 60.88 No.740 237.60 1,080.80 6/02 10,411.80 No.741 496.15 No.748 801.90 854.17 6/04 10,888.98 No.743 671.30 No.744 506.88 840.50 6/09 9,931.24 No.748 117.25 No.746 298.66 MS 3,800.00 6/09 13,015.33 No.748 450.90 No.749 840.13 M3 810.00 6/09 12,134.30 No.750 276.77 No. 751 299.37 896.61 6/11 12,454.77 No.752 637.01 No.763 380.95 882.95 6/16 12,419.76 No.754 449.75 No.755 272.75 1,608.74 6/18 13,304.00 No.757 407.95 No.760 486.39 897.34 6/23 13,307.00 942.71 6/25 14,249.71 NSF 550.00 6/28 13,699.71 sc 75.00 6/30 13,824.71 EC – KRROR CORRECTION OD – OVERDRAFT MS – MISCELLANEOUS PS – PAYMENT STOPPED NSF – NOT SUFFICIENT FUNDS SC – SERVICE CHARGE THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.

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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Question

Bank reconciliation and entries

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 reproducedmas 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	$9,317.40
CASH RECEIPTS FOR MONTH OF JUNE	$9,223.76
DUPLICATE DEPOSIT TICKETS:
Date and amount of each deposit in June:

Beeler Furniture Company Bank Reconciliation May 31 20Y2

Cash balance according to bank statement

$ 9,447.20

Add deposit for May 31, not recorded by bank

690.25

Deduct outstanding checks:

No. 731

$162.15

736

345.95

738

251.40

739

60.55

820.05

Adjusted balance

$ 9,317.40

Cash balance according to company's records

$ 9,352.50

Deduct bank service charges

35.10

Adjusted balance

$ 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.

2. Journalize the necessary entries. 1he accounts have not been closed.

3. What is the amount of Cash that should appear on the balance sheet as of June 30?

4. Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected.

JUNE BANK STATEMENT:

Date
Amount
Date
Amount
Date
Amount
June 1
$1,080.50
June 10
$ 996.61
June 22
$ 897.34
3
854.17
15
882.95
24
947.21
8
840.50
17
1,606.74
30
1,117.74
CHECKS WRITTEN:
Number and amount of each check issued in June:
Check No.
Amount
Check No.
Amount
Check No.
Amount
740
$237.50
747
Void
754
$ 449.75
741
495.15
748
$450.90
755
272.75
742
501.90
749
640.13
756
113.95
743
761.30
750
276.77
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
Total amount of checks issued in June
$8,395.66
BANK RECONCILIATION FOR PRECEDING MONTH:

PAGE 1
MEMBER FDIC
ACCOUNT NUMBER
AMERICAN NATIONAL BANK
OF CHICAGO
FROM 8/01/20Y2 TO 6/30/20Y2
CHICAGO, IL 60603 (312) 441-1239
BALANCE
9,447.20
9 DEPOSITS
8,691.77
20 WITHDRAWALS
7,699.28
BEELER FURNITURE COMPANY
4 OTHER DEBITS
AND CREDITS
3,085.00CR
NEW BALANCE
13,624.71
CHECKS AND OTHER DEBITS -
- DEPOSITS –-. - DATE –-- BALANCE-- .
No.731
162.18
No.736
345.95
690.25
6/01
9,629.35
No.739
60.88
No.740
237.60
1,080.80
6/02
10,411.80
No.741
496.15
No.748
801.90
854.17
6/04
10,888.98
No.743
671.30
No.744
506.88
840.50
6/09
9,931.24
No.748
117.25
No.746
298.66 MS 3,800.00
6/09
13,015.33
No.748
450.90
No.749
840.13
M3 810.00
6/09
12,134.30
No.750
276.77
No. 751
299.37
896.61
6/11
12,454.77
No.752
637.01
No.763
380.95
882.95
6/16
12,419.76
No.754
449.75
No.755
272.75
1,608.74
6/18
13,304.00
No.757
407.95
No.760
486.39
897.34
6/23
13,307.00
942.71
6/25
14,249.71
NSF 550.00
6/28
13,699.71
sc
75.00
6/30
13,824.71
EC – KRROR CORRECTION
OD – OVERDRAFT
MS – MISCELLANEOUS
PS – PAYMENT STOPPED
NSF – NOT SUFFICIENT FUNDS
SC – SERVICE CHARGE
THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL.
ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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