Question

Please show method of how to calculate each entry

Milton Company has just received the following monthly bank statement for June 2017. Checks Deposits Balance Date June 1 $25,000 June 2 $150 24,850 $6,000 June 3 30,850 30,100 June 4 750 June 5 1,500 28,600 June 7 10,050 18,550 June 9 8,000 26,550 3,660 June 10 22,890 20,200 June 11 2,690 June 12 9,000 29,200 June 13 550 28,650 June 17 7,500 21,150 5,500 June 20 26,650 June 21 650 26,000 June 22 700 25,300 June 23 4,140t 29,440 28,440 June 25 1,000 June 30 60* 28,380 Totals $29,260 $32,640 *Bank service charge tNote collected, including $140 interest

Answer 1

1.Determine the amount of deposits in transit at the end of June.
Deposits in transit	$   6,000.00
The deposit for $6,000 recorded in the books on June 30 has not yet been recorded by the bank
2.Determine the amount of outstanding checks at the end of June.
Outstanding checks = $1100 + 1360	$   2,460.00
The checks written on June 26 ($1,100) and June 27 ($1,360) have not yet been cleared by the bank
Milton Company
Bank Reconciliation
30-Jun-17
Balance per bank statement	$ 28,380.00
Additions to bank balance:
Deposits in transit	$   6,000.00
Total	$ 34,380.00
Deductions from bank balance:
Outstanding checks = $1100 + 1360	$ (2,460.00)
Adjusted Bank balance	$ 31,920.00
Balance per Books	$ 27,390.00
Additions to book balance:
Note collected by bank	$   4,140.00
Error in books (10,500 - 10050)	$      450.00
Total	$ 31,980.00
Deductions from book balance:
Service charges	$      (60.00)
Adjusted Book Balance	$ 31,920.00
Journal entry
Cash	$   4,530.00
Miscellaneous Expense	$        60.00
Notes receivables		$           4,000.00
Interest Revenue		$              140.00
Supplies		$              450.00