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).

The question is based on the concept of Bank Reconciliation Statement. Bank Reconciliation Statement…

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

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

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

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).

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