Problem #1: Bank Reconciliation Using the information provided below, complete 1) a bank reconciliation and 2) the necessary journal entries. The cash account for Vin D Co. at June 30, 2014, indicated a balance of $13,935. The bank statement indicated a balance of $21,550 on June 30, 2014. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: The bank had collected $7,000 on a note left for collection. The face of the note was $6,600. A deposit of $5,000, representing receipts of June 30, had been made too late to appear on the bank statement. Checks outstanding totaled $6,000. A check for $1000 returned with the statement had been incorrectly recorded by Vin D Co. as $1100. The check was for the payment of an obligation to Hirsch Co. for the purchase on ассount. A check drawn for $50 had been erroneously charged by the bank as $500. Bank service charges for June amounted to $35.

Problem #1: Bank Reconciliation Using the information provided below, complete 1) a bank reconciliation and 2) the necessary journal entries. The cash account for Vin D Co. at June 30, 2014, indicated a balance of $13,935. The bank statement indicated a balance of $21,550 on June 30, 2014. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: The bank had collected $7,000 on a note left for collection. The face of the note was $6,600. A deposit of $5,000, representing receipts of June 30, had been made too late to appear on the bank statement. Checks outstanding totaled $6,000. A check for $1000 returned with the statement had been incorrectly recorded by Vin D Co. as $1100. The check was for the payment of an obligation to Hirsch Co. for the purchase on ассount. A check drawn for $50 had been erroneously charged by the bank as $500. Bank service charges for June amounted to $35.

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Problem #1: Bank Reconciliation
Using the information provided below, complete 1) a bank reconciliation and 2) the necessary journal
entries.
The cash account for Vin D Co. at June 30, 2014, indicated a balance of $13,935, The bank statement
indicated a balance of $21,550 on June 30, 2014. Comparing the bank statement and the accompanying
canceled checks and memos with the records revealed the following reconciling items:
The bank had collected $7,000 on a note left for collection. The face of the note was $6,600.
A deposit of $5,000, representing receipts of June 30, had been made too late to appear on the
bank statement.
Checks outstanding totaled $6,000.
A check for $1000 returned with the statement had been incorrectly recorded by Vin D Co, as
$1100. The check was for the payment of an obligation to Hirsch Co. for the purchase on
ассount.
A check drawn for $50 had been erroneously charged by the bank as $500.
Bank service charges for June amounted to $35.
casn of 2, 550 banh state ment. 139935
dePasit of 5,o0o f June 30
chech For looo incornaktly reard as lloor
chuch s outsan dirg
5000
(6,00
| oot 3935
T4035

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