Question

Prepare a June bank reconciliation for Savvy Company

Prepare the general journal entries to bring the company’s book balance of cash onto conformity with the reconciles balance as of June 30

12) The following information is avai lable for the Savvy Company for the month of June. ACHEo a. On June 30, after all transactions have been recorded, the balance in the company's Cash has a balance of $17,202. b. The company's bank statement shows a balance on June 30 of $19,279. c. Outstanding checks at June 30 total $2,984. d. A credit t memo included with the bank statement indicates that the bank collected $770 on a includ noninterest-bearing note receivable for Savvy. e. A debit memo included with the bank statement shows a $67 NSF check from a customer,J. f A deposit placed in the bank's night depository on June 30 totaling $1,675 did not appear on the bank statement. g. Comparing the checks on the bank statement with the entries in the accounting records reveals tha check #3445 for the payment of an account payable was correctly written for S2 450, but was recorded in the accounting records as $ h. Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books 2. Prepare the general journal entries to bring the company's book balance of cash into conformity with the reconciled balance as of June 30 1. Prepare the June bank reconciliation for the Savvy Company. 1. Bank Reconciliation (for Q. 12) Savry Company Bank Reconei1iation June 30 Bank statement balance Book balance Add: Deduct: Deduct: Adjusted Book Adjusted Bank alance 2. Journal Entries (for Q. 12) Debit Credit Date

Answer 1

Bank Reconciliation $17,202 Ending Cash Balance per Bank $ 19,279 Ending Cash Balance per Books Add: Deposits in Transit Less: Outstanding Checks Less: Bank errors $1,675 Add: Credit memo for note receivables$ 770 $ (2,984) Less: Customer NSF $ (67) Add/Less Book errors Less: Bank Charges $90(2540-2450) S(25) $17,970 Adjusted Bank Balance $ 17,970Adjusted Book Balance Credit Accounts tittle Accounts receivable Bank Debit 67 67 Bank Accounts payable 90 90 Bank charges Bank 25 25 Bank Note Receivables $770 770