Question

Check No. The Cash account of BCD Associates at June 30, xxxx: Cash Beg. Bal 400 Jun 05 Jun 06 800 3,010 Jun 12 Jun 15 1,800 1,100 Jun 19 Jun 23 1,100 500 Jun 25 Jun 30 2,400 900 Jun 27 Total 10,095 5.910 Total End. Bal 4,185 102 101 103 104 105 $ 3.995 BCD's June bank statement shows the following: Beginning Balance 05/31 Deposits and other Credits: Deposit 06/07 $ 800 Deposit 06/15 1.800 ETF-Collection of note 06/17 1.000 Deposit 06/24 1.100 Interest 06/30 Total Deposits and Credits: Subtotal Checks: Number Amount 102 $ 400 101 3,100 103 1,100 S 4,600 Other Deductions: Date EFT-EZ Rent 06/01 $ 330 NSF Check 06/13 700 1.030 4,715 $ 8,710 5.630 $ 3,080 Total Drawings and Deductions: Balance before deduction of Fees Fees and Charges: Service Charges 06/30 Total Fees and Charges: Ending Balance: 06/30 $_10 Additional data: BCD deposited all cash receipts in the bank and makes all the payments by checks. Check No 101 which was issued for $3,100, erroneously recorded $3,010. This check was issued as a payment for utilities. Requirements: 1- Prepare the bank reconciliation of BCD Associates at June 30, XXXX 2- Journalize the entries based on the bank reconciliation 3. Post journal entries related to cash to the Cash Account (T).

Answer 1

1.

BCD Associates
Bank Reconciliation
June 30, xxxx
Balance per bank statement		3070
Add: Deposits in transit		2400
		5470
Less: Outstanding checks
Check no. 104	500
Check no. 105	900	1400
Adjusted balance $		4070
Balance per books		4185
Add:
EFT collection of note by bank	1000
Interest credited by bank	15	1015
		5200
Less:
Error in recording check no. 101 ($3100 - $3010)	90
EFT for rent	330
NSF check	700
Bank service charges	10	1130
Adjusted balance $		4070

2.

Date	General Journal	Debit	Credit
June 30, xxxx	Cash	1000
	Notes receivable		1000
	(To record EFT collection of note by bank)
June 30, xxxx	Cash	15
	Interest revenue		15
	(To record interest credited by bank)
June 30, xxxx	Utilities expense	90
	Cash		90
	(To rectify error in recording check no. 101)
June 30, xxxx	Rent expense	330
	Cash		330
	(To record EFT for rent)
June 30, xxxx	Accounts receivable	700
	Cash		700
	(To record NSF check)
June 30, xxxx	Miscellaneous expense	10
	Cash		10
	(To record bank service charges)

3.

Cash
Jun. 30 bal.	4185
Jun. 30 adj.	1015	1130	Jun. 30 adj.
Total	5200	1130
Jun. 30 adj. bal.	4070

Note: A combined entry has been shown posted to the cash account for all debit adjustments and credit adjustments.