Cathyâs Consulting collected its latest bank statement on 1 July 2014. All entries appearing in the bank statement that had not been entered into the cash journals were subsequently entered. The cash journals were posted and the resulting balance of the cash at bank account in the ledger at 30 June was $18,263.08 Dr. The balance shown on the bank statement at 30 June was $17,016.62 Cr. The following items recorded in the cash journals did not appear on the bank statement: 1. A cheque deposited by Cathyâs Consulting on 30 June of $2,627.12. 2. Cheques issued by Cathyâs Consulting during June that had not been presented for payment were: Cheque No. 311 $527.26 314 $606.40 316 $283.00 A cheque written for $26 appeared incorrectly in the bank statement as $62. Required: Prepare the bank reconciliation statement at 30 June 2014.
Cathyâs Consulting collected its latest bank statement on 1 July 2014. All entries appearing in the bank statement that had not been entered into the cash journals were subsequently entered. The cash journals were posted and the resulting balance of the cash at bank account in the ledger at 30 June was $18,263.08 Dr. The balance shown on the bank statement at 30 June was $17,016.62 Cr. The following items recorded in the cash journals did not appear on the bank statement: 1. A cheque deposited by Cathyâs Consulting on 30 June of $2,627.12. 2. Cheques issued by Cathyâs Consulting during June that had not been presented for payment were: Cheque No. 311 $527.26 314 $606.40 316 $283.00 A cheque written for $26 appeared incorrectly in the bank statement as $62. Required: Prepare the bank reconciliation statement at 30 June 2014.
Related questions
The bank reconciliation prepared by Gatz Company on May 31,2017, appeared as follows:
| GATZ COMPANY | |||||
| Bank Reconciliation | |||||
| May 31, 2017 | |||||
| Bank statementbalance | $9,264.35 | Book balance | $19,429.00 | ||
| Add: | |||||
| Deposit of May 31 in transit | 949.00 | ||||
| $10,213.35 | |||||
| Deduct: | Deduct: | ||||
| Outstanding cheques: | NSF cheque plusservice | ||||
| #876 | $636.00 | charge | $11,530.65 | ||
| #882 | 1,744.00 | 2,380.00 | Bank servicecharge | 65.00 | 11,595.65 |
| Adjusted bankbalance | $7,833.35 | Adjusted bookbalance | $7,833.35 | ||
The Cash account in the General Ledger appeared as follows on June30 (Gatz uses only a General Journal to recordtransactions):
| Cash | Acct. No.101 | ||||
| Date | Explanation | PR | Debit | Credit | Balance |
| 2017 | |||||
| May 31 | Balance | 7,833.35 | |||
| June 1 | Cheque #883 | GJ16 | 1,847.00 | 5,986.35 | |
| 1 | Cheque #884 | GJ16 | 107.00 | 5,879.35 | |
| 3 | Cheque #885 | GJ16 | 618.00 | 5,261.35 | |
| 4 | Cheque #886 | GJ16 | 1,917.00 | 3,344.35 | |
| 9 | Deposit | GJ16 | 4,579.00 | 7,923.35 | |
| 12 | Cheque #887 | GJ16 | 425.15 | 7,498.20 | |
| 12 | Cheque #888 | GJ16 | 3,138.00 | 4,360.20 | |
| 12 | Cheque #889 | GJ16 | 936.00 | 3,424.20 | |
| 18 | Deposit | GJ16 | 3,879.00 | 7,303.20 | |
| 20 | Cheque #890 | GJ16 | 2,537.00 | 4,766.20 | |
| 21 | Cheque #891 | GJ16 | 1,406.24 | 3,359.96 | |
| 24 | Cheque #892 | GJ16 | 2,492.00 | 867.96 | |
| 26 | Cheque #893 | GJ16 | 71.00 | 796.96 | |
| 29 | Deposit | GJ16 | 1,745.00 | 2,541.96 | |
The following bank statement is available for June:
| Bank Statement | |||||
| To: GatzCompany | June 30, 2017 Bank of Montreal | ||||
| Cheques/Charges | Deposits/Credits | Balance | |||
| 05/31 | 9,264.35 | ||||
| #884 | 06/01 | 107.00 | 06/01 | 949.00 | 10,106.35 |
| #883 | 06/04 | 1,847.00 | 8,259.35 | ||
| #876 | 06/09 | 636.00 | 06/09 | 4,579.00 | 12,202.35 |
| #889 | 06/12 | 936.00 | 11,266.35 | ||
| #882 | 06/14 | 1,744.00 | 9,522.35 | ||
| #887 | 06/18 | 245.15 | 06/18 | 3,879.00 | 13,156.20 |
| #885 | 06/20 | 618.00 | 12,538.20 | ||
| #891 | 06/21 | 1,046.24 | 11,491.96 | ||
| #886 | 06/29 | 1,917.00 | 9,574.96 | ||
| SC | 06/30 | 72.00 | 06/30 | 9,502.96 | |
| NSF = Not Sufficient Funds | SC = Service Charge | PMT = Principal Payment | INT = Interest | ||
Required:
a. Prepare a bank reconciliation at June 30, 2017. Assumethat any errors made were by the book keeper (cheque #887 was foroffice supplies; cheque #891 was for utilities expense).(Round the final answers to the nearest cent.)
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b. Prepare the necessary entries resulting fromthe bank reconciliation.
Journal entry worksheet
Record to account for error in Cheque #887.
Note: Enter debits before credits.
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Journal entry worksheet
Record to account for error in Cheque #891.
Note: Enter debits before credits.
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Journal entry worksheet
Record bank service charges for June.
Note: Enter debits before credits.
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The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $14,110. The bank statement indicated a balance of $16,730 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
Checks outstanding totaled $6,020.
A deposit of $6,270, representing receipts of June 30, had been made too late to appear on the bank statement.
The bank collected $3,260 on a $3,100 note, including interest of $160.
A check for $880 returned with the statement had been incorrectly recorded by Pala Medical Co. as $800. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
A check drawn for $30 had been erroneously charged by the bank as $300.
Bank service charges for June amounted to $40.
1. Prepare a bank reconciliation.
| Pala Medical Co. | ||||||||||||||||||||||||||
| Bank Reconciliation | ||||||||||||||||||||||||||
| June 30, 20Y1 | ||||||||||||||||||||||||||
| Cash balance according to bank statement | $ | |||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Deposit of June 30, not recorded by bank | $ | |||||||||||||||||||||||||
| Bank error in charging check as $300 instead of $30 | ||||||||||||||||||||||||||
| Outstanding checks | ||||||||||||||||||||||||||
| Total adjustments | ||||||||||||||||||||||||||
| Adjusted balance | $ | |||||||||||||||||||||||||
| Cash balance according to company's records | $ | |||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Proceeds of note collected by bank, including $160 interest | $ | |||||||||||||||||||||||||
| Error in recording check. | ||||||||||||||||||||||||||
| Bank service charges | ||||||||||||||||||||||||||
| Total adjustments | ||||||||||||||||||||||||||
| Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.
| $ | |||||||||||||||||||||||||
