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 showed a balance of $7,470. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. 3. 4. 5. 6. 7. (a) 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 bank for collection.) Receipts for June 30 for $6,102 were not deposited until July 2. Checks outstanding on June 30 totaled $3,844.89. The bank had charged the Sheffield Co.'s account for a customer's uncollectible check amounting to $455.76 on June 29. A customer's check for $162 (as payment on the customer's Accounts Receivable) had been entered as $108 in the cash receipts journal by Sheffield on June 15. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $104.76 had been entered as $1,047.60. Both checks had been issued to pay for purchases and were payments on Sheffield's Accounts Payable. Prepare a bank reconciliation dated June 30, 2020, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g. 105. COL
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 showed a balance of $7,470. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. 3. 4. 5. 6. 7. (a) 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 bank for collection.) Receipts for June 30 for $6,102 were not deposited until July 2. Checks outstanding on June 30 totaled $3,844.89. The bank had charged the Sheffield Co.'s account for a customer's uncollectible check amounting to $455.76 on June 29. A customer's check for $162 (as payment on the customer's Accounts Receivable) had been entered as $108 in the cash receipts journal by Sheffield on June 15. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $104.76 had been entered as $1,047.60. Both checks had been issued to pay for purchases and were payments on Sheffield's Accounts Payable. Prepare a bank reconciliation dated June 30, 2020, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g. 105. COL
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 showed
a balance of $7,470. Upon comparing the statement with the cash records, the following facts were determined.
1.
2.
3.
4.
5.
6.
7.
(a)
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
bank for collection.)
Receipts for June 30 for $6,102 were not deposited until July 2.
Checks outstanding on June 30 totaled $3,844.89.
The bank had charged the Sheffield Co.'s account for a customer's uncollectible check amounting to $455.76 on June 29.
A customer's check for $162 (as payment on the customer's Accounts Receivable) had been entered as $108 in the cash
receipts journal by Sheffield on June 15.
Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of
$104.76 had been entered as $1,047.60. Both checks had been issued to pay for purchases and were payments on Sheffield's
Accounts Payable.
Prepare a bank reconciliation dated June 30, 2020, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g.
125.62.)
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