The cash account of Sheffield Co. showed a ledger balance of $7,088.13 on June 30, 2020. The bank statement as of that date show a balance of $7,470. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. There were bank service charges for June of $45. A bank memo stated that Bao Dai's note for $2,160 and interest of $64.80 had been collected on June 29, and the bank had made a charge of $9.90 on the collection. (No entry had been made on Sheffield's books when Bao Dai's note was sent to the

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare entries necessary to make the books correct and complete. Use Office Expense account for bank service charges. *(Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)*
Transcribed Image Text:Prepare entries necessary to make the books correct and complete. Use Office Expense account for bank service charges. *(Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)*
### Bank Reconciliation Overview for Sheffield Co.

**Ledger vs Bank Statement Balances:**
- Ledger Balance (June 30, 2020): $7,088.13
- Bank Statement Balance (June 30, 2020): $7,470.00

**Reconciliation Details:**

1. **Bank Charges**: 
   - **Service Charge**: $45 for June.

2. **Collections**:
   - **Bao Dai’s Note**: $2,160 and interest of $64.80 collected on June 29.
   - **Collection Fee**: $9.90 charged by the bank.

3. **Deposits in Transit**:
   - **Receipts for June 30**: $6,102, not deposited until July 2.

4. **Outstanding Checks**:
   - **Total Outstanding as of June 30**: $3,844.89.

5. **Uncollectible Items**:
   - **Charged by Bank**: $455.76 for a customer’s uncollectible check on June 29.

6. **Errors in Recording**:
   - **Customer’s Check Misentered**: $162 entered as $108 for Accounts Receivable on June 15.

7. **Check Recording Errors**:
   - **Check No. 742**: $491 recorded as $419.
   - **Check No. 747**: $104.76 recorded as $1,047.60.
   - Both checks related to Accounts Payable.

**Task:**

- **Prepare a bank reconciliation** dated June 30, 2020, ensuring accuracy of the cash balance. Calculations should be precise, rounded to two decimal places (e.g., 125.62).
Transcribed Image Text:### Bank Reconciliation Overview for Sheffield Co. **Ledger vs Bank Statement Balances:** - Ledger Balance (June 30, 2020): $7,088.13 - Bank Statement Balance (June 30, 2020): $7,470.00 **Reconciliation Details:** 1. **Bank Charges**: - **Service Charge**: $45 for June. 2. **Collections**: - **Bao Dai’s Note**: $2,160 and interest of $64.80 collected on June 29. - **Collection Fee**: $9.90 charged by the bank. 3. **Deposits in Transit**: - **Receipts for June 30**: $6,102, not deposited until July 2. 4. **Outstanding Checks**: - **Total Outstanding as of June 30**: $3,844.89. 5. **Uncollectible Items**: - **Charged by Bank**: $455.76 for a customer’s uncollectible check on June 29. 6. **Errors in Recording**: - **Customer’s Check Misentered**: $162 entered as $108 for Accounts Receivable on June 15. 7. **Check Recording Errors**: - **Check No. 742**: $491 recorded as $419. - **Check No. 747**: $104.76 recorded as $1,047.60. - Both checks related to Accounts Payable. **Task:** - **Prepare a bank reconciliation** dated June 30, 2020, ensuring accuracy of the cash balance. Calculations should be precise, rounded to two decimal places (e.g., 125.62).
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