Please explain how to calculate the results to the below problem. Bentley Company’s June 30 bank statement and June ledger account for cash are summarized below: BANK STATEMENT Checks Deposits Balance Balance, June 1 $ 6,500 Deposits during June $ 16,200 22,700 Checks cleared during June $ 16,600 6,100 Bank service charges 40 6,060 Balance, June 30 6,060 Cash (A) June 1 Balance 6,500 June Checks written 19,000 June Deposits 18,100 Required: 1. Reconcile the bank account. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $2,400. A deposit of $1,900 is in transit at the end of June. 2. Prepare the journal entry that should be made as a result of the bank reconciliation. 3. What is the balance in the Cash account after the reconciliation entries? 4. What is the total amount of cash that should be reported on the balance sheet at June 30? 1. BENTLEY COMPANY Bank Reconciliation, June 30 Company's Books Bank Statement Additions: Additions: 0 0 0 Deductions: Deductions: 0 0 Correct cash Correct cash balance 2. No Date General Journal Debit Credit 1 June 30 Cash 16,200 2 June 30 Accounts receivable 18,100 3 June 30 Bank service charge expense 40

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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Please explain how to calculate the results to the below problem.

Bentley Company’s June 30 bank statement and June ledger account for cash are summarized below:

BANK STATEMENT
	Checks	Deposits	Balance
Balance, June 1						$	6,500
Deposits during June				$	16,200		22,700
Checks cleared during June		$	16,600				6,100
Bank service charges			40				6,060
Balance, June 30							6,060

Cash (A)
June 1 Balance	6,500	June Checks written	19,000
June Deposits	18,100

Required:

1. Reconcile the bank account. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $2,400. A deposit of $1,900 is in transit at the end of June.

2. Prepare the journal entry that should be made as a result of the bank reconciliation.

3. What is the balance in the Cash account after the reconciliation entries?

4. What is the total amount of cash that should be reported on the balance sheet at June 30?

BENTLEY COMPANY
Bank Reconciliation, June 30
Company's Books	Bank Statement

Additions:			Additions:

				0
		0		0
Deductions:			Deductions:

		0		0
Correct cash			Correct cash balance

No	Date	General Journal	Debit
1	June 30	Cash	16,200

2	June 30	Accounts receivable	18,100

3	June 30	Bank service charge expense	40

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