Debbie's Dog Care cash account shows a $10,000 debit balance and its bank statement shows $12,500 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $3,500. The June 30 bank statement lists a $50 bank service charge. The bank received a $550 direct deposit into Debbie's Dog Care account. The $550 was payment from one of Debbie's customers, paying his account balance. The June 30 cash receipts of $1,500 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. Required: Prepare Debbie's Dog Care bank reconciliatin for June 30 using the above information. Prepare the necessary journal entries for Debbie's Dog Care.
Debbie's Dog Care cash account shows a $10,000 debit balance and its bank statement shows $12,500 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $3,500. The June 30 bank statement lists a $50 bank service charge. The bank received a $550 direct deposit into Debbie's Dog Care account. The $550 was payment from one of Debbie's customers, paying his account balance. The June 30 cash receipts of $1,500 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. Required: Prepare Debbie's Dog Care bank reconciliatin for June 30 using the above information. Prepare the necessary journal entries for Debbie's Dog Care.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Debbie's Dog Care cash account shows a $10,000 debit balance and its bank statement shows $12,500 on deposit at the close of business on June 30.
- Outstanding checks as of June 30 total $3,500.
- The June 30 bank statement lists a $50 bank service charge.
- The bank received a $550 direct deposit into Debbie's Dog Care account. The $550 was payment from one of Debbie's customers, paying his account balance.
- The June 30 cash receipts of $1,500 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
Required:
- Prepare Debbie's Dog Care bank reconciliatin for June 30 using the above information.
- Prepare the necessary
journal entries for Debbie's Dog Care.
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