Question

The bank statement for Urethane Company for June 30 indicates a balance of All cash receipts are deposited in a night depository each evening after banking $9,293.11 pts The accounting records indicate the following summary data for cash recei ments for June: Cash balance as of June 1 Total cash receipts for June Total amount of checks issued in June $3,943.50 28,971.60 28,388.85 Comparing the bank statement and the accompanying canceled checks and memos w the records reveals the following reconciling items: a. The bank had collected for Urethane Company $1,030 on a note left for collection. The face amount of the note was $1,000. b. A deposit of $1,852.21, representing receipts of June 30, had been made too late to appear on the bank statement. c. Checks outstanding totaled $5,265.27. d. A check drawn for $139 had been incorrectly charged by the bank as $157. e. A check for $370 returned with the statement had been recorded in the company's records as $730. The check was for the payment of an obligation to Avery Equipment Company for the purchase of office supplies on account. f. Bank service charges for June amounted to $18.20. Instructions 1. Prepare a bank reconciliation for June.

Answer 1

SOLUTION

Bank reconciliation statement-

Particulars	Amount ($)	Amount ($)
Balance as per bank		9,293.11
Add: Deposit of June 30 not recorded by bank	1,852.21
Bank error in charging check as 157 instead of 139	18	1,870.21
		11,163.32
Less: Outstanding checks		(5,265.27)
Adjusted bank balance		5,898.05
Balance as per books (3,943.50+28,971.60-28,388.85)		4,526.25
Add: Proceeds of note collected by bank	1,030
Error in recording check (730-370)	360	1,390
		5,916.25
Less: Bank service charges		(18.20)
Adjusted book balance		5,898.05