The cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. There were bank service charges for June of $120. A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to the bank for collection.) 3. Receipts for June 30 for $16,272 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $10,253.04. 5. 6. The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29. A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash receipts journal by Waterway on June 15. 7. 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 $279.36 had been entered as $2,793.60. Both checks had been issued to pay for purchases and were payments on Waterway's Accounts Payable. (a) Prepare a bank reconciliation dated June 30, 2025, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g. 125.62.)
The cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. There were bank service charges for June of $120. A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to the bank for collection.) 3. Receipts for June 30 for $16,272 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $10,253.04. 5. 6. The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29. A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash receipts journal by Waterway on June 15. 7. 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 $279.36 had been entered as $2,793.60. Both checks had been issued to pay for purchases and were payments on Waterway's Accounts Payable. (a) Prepare a bank reconciliation dated June 30, 2025, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g. 125.62.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date
showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined.
1.
2.
There were bank service charges for June of $120.
A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had
made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to
the bank for collection.)
3.
Receipts for June 30 for $16,272 were not deposited until July 2.
4.
Checks outstanding on June 30 totaled $10,253.04.
5.
6.
The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29.
A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash
receipts journal by Waterway on June 15.
7.
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
$279.36 had been entered as $2,793.60. Both checks had been issued to pay for purchases and were payments on
Waterway's Accounts Payable.
(a)
Prepare a bank reconciliation dated June 30, 2025, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g.
125.62.)
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