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 up-to-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 2021 using the following information. GENERAL LEDGER—COOKIE CREATIONS INC. Cash Date Explanation Ref Debit Credit Balance 2021 June 1 Balance 2,657 1 750 3,407 3 Check #600 625 2,782 3 Check #601 95 2,687 8 Check #602 56 2,631 9 1,050 3,681 13 Check #603 425 3,256 20 155 3,411 28 Check #604 297 3,114 28 110 3,224 PREMIER BANK Statement of Account—Cookie Creations Inc. June 30, 2021 Date Explanation Checks and Other Debits Deposits Balance May 31 Balance 3,256 June 1 Deposit 750 4,006 6 Check #600 625 3,381 6 Check #601 95 3,286 8 Check #602 56 3,230 9 Deposit 1,050 4,280 10 NSF check 135 4,145 14 Check #603 452 3,693 20 Deposit 125 3,818 23 EFT–Telus 85 3,733 28 Check #599 361 3,372 30 Bank charges 13 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. 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 cell phone 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

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 up-to-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 2021 using the following information. GENERAL LEDGER—COOKIE CREATIONS INC. Cash Date Explanation Ref Debit Credit Balance 2021 June 1 Balance 2,657 1 750 3,407 3 Check #600 625 2,782 3 Check #601 95 2,687 8 Check #602 56 2,631 9 1,050 3,681 13 Check #603 425 3,256 20 155 3,411 28 Check #604 297 3,114 28 110 3,224 PREMIER BANK Statement of Account—Cookie Creations Inc. June 30, 2021 Date Explanation Checks and Other Debits Deposits Balance May 31 Balance 3,256 June 1 Deposit 750 4,006 6 Check #600 625 3,381 6 Check #601 95 3,286 8 Check #602 56 3,230 9 Deposit 1,050 4,280 10 NSF check 135 4,145 14 Check #603 452 3,693 20 Deposit 125 3,818 23 EFT–Telus 85 3,733 28 Check #599 361 3,372 30 Bank charges 13 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. 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 cell phone 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

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

GENERAL LEDGER—COOKIE CREATIONS INC.
Cash
Date	Explanation	Ref	Debit	Credit	Balance
2021
June 1	Balance				2,657
1			750		3,407
3	Check #600			625	2,782
3	Check #601			95	2,687
8	Check #602			56	2,631
9			1,050		3,681
13	Check #603			425	3,256
20			155		3,411
28	Check #604			297	3,114
28			110		3,224

PREMIER BANK Statement of Account—Cookie Creations Inc. June 30, 2021
Date	Explanation	Checks and Other Debits	Deposits	Balance
May 31	Balance			3,256
June 1	Deposit		750	4,006
6	Check #600	625		3,381
6	Check #601	95		3,286
8	Check #602	56		3,230
9	Deposit		1,050	4,280
10	NSF check	135		4,145
14	Check #603	452		3,693
20	Deposit		125	3,818
23	EFT–Telus	85		3,733
28	Check #599	361		3,372
30	Bank charges	13		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.
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 cell phone 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.

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