Question

E6-27 (Algo) Preparing Bank Reconciliation and Entries and Reporting Cash L06-4 Bentley Company's June 30 bank statement and June ledger account for cash are summarized below: BANK STATEMENT Checks $15.700 Balance, June 1 Deposits during June Checks cleared during June Bank service charges Balance, June 30 $16,650 Balance $ 7.600 23,300 6,650 6,611 6,611 39 orang June 1 Balance June Deposits pelance Cash(A) 7,600 June Cheeks written 18,100 ana Chucks written 19,50|| Required: 1. Reconcile the bank account. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $3,200. A deposit of $2,400 is in transit at the end of June. 2. Prepare the journal entry that should be made as a result of the bank reconciliation 3. What is the balance in the Cash account after the reconciliation entries? 4. What is the total amount of cash that should be reported on the balance sheet at June 307 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Reconcile the bank account. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $3,200. A deposit of $2,400 is in transit at the end of June, BENTLEY COMPANY Bank Reconciliation June 30 Company's Books

Answer 1

1)
BENTLEY COMPANY
Bank Reconciliation Statement
As on June 30th
In the books of Company			As per Bank Statement
Balance as per Books ($7,600 + $18,100 - $19,850)		$5,850	Balance as per Bank Statement		$6,611
Add:			Add:
			Deposits in Transit ($18,100 - $15,700)	$2,400
					$2,400
Less:			Less:
Bank service charges	($39)		Outstanding checks ($19,850 - $16,650)	($3,200)
		($39)			($3,200)
Adjusted Cash Balance		$5,811	Adjusted Bank Balance		$5,811

2) Adjusting Entry
Date	Account Titles and Explanations	Debit	Credit
Jun. 30	Bank Service Charges	$39
	Cash		$39
	(To record the payment of bank service charges)
3) The cash balance after the reconciliation is $5,811.
4) The total amount of cash that should be reported on the balance sheet at June 30 is $5,811.