Question

Problem 7-13 The cash account of Cheyenne Co. showed a ledger balance of $18,781.68 on June 30, 2017. The bank statement as of that date showed a balance of $19.920.00. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. 3. 4. 5. There were bank service charges for June of $120.00. A bank memo stated that Bao Dar's note for $5,760.00 and interest of $172.80 had been collected on June 29, and the bank had made a charge of 2.0 on the collection. No entry had been made on Cheyenne's books when Bao Dai's note was sent to the bank for collection.) Receipts for June 30 for $16,272.00 were not deposited until July 2. Checks outstanding on June 30 totaled $10,253.04. The bank had charged the Cheyenne Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29 A customer's check for $432.00 (as payment on the customer's Accounts Receivable) had been entered as $288.00 in the cash receipts journaby Cevenne n e 15 Check no. 742 in the amount of $491.00 had been entered in the cash journal as $419.00, and check no. 747 in the amount of $279.35 had been entered 2 .0. Both checks had been Issued to pay for purchase of equipment and were payments on Cheyenne's Accounts Payable 7. Prepare a bank reconciliation dated June 30, 2017, proceeding to a correct cash balance. (Enter answers to 2 decimal 125.02.) CHEYENNE CO. Bank Reconciliation June , 2017

Answer 1

Answer-

CHEYENNE CO. Bank Reconciliation June 30
Balance per bank, June 30	19,920
Add: Deposits in transit	16,272
Deduct: Outstanding checks	10,253.04
Correct cash balance, June 30	25,938.96
Balance per books, June 30	18,781.68
Add: Error in recording deposit ($432 – $288)	144
Error on check no. 747 2793.60-279.36	2,514.24
Note collection ($5,760+172.80)	5,932.80
Deduct: NSF check	1215.36
Error on check no. 742 ($491 – $419)	72
Bank service charges ($120 + $26.40)	146.40
Correct cash balance, June 30	25,938.96

Journal Entries

	DR	CR
Cash	8,591.04
Accounts Receivable		144
Accounts Payable		2,514.24
Notes Receivable		5,760
Interest Revenue		172.80
	DR	CR
Accounts Receivable	1,215.36
Accounts Payable	72
Office Expense—Bank Charges	146.40
Cash		1,433.76

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