Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance.
On June 30, 2010, the balance in Wells Builder’s checkbook and Cash account was $6,418.59. The balance shown on the bank statement on the same date was $7,542.03.
Notes
a. The following checks were issued but have not yet been paid by the bank: Check 533 for $148.95, Check 535 for $97.50, and Check 537 for $425.40.
b. A credit memorandum shows that the bank has collected a $1,500 note receivable and interest of $30 for the firm. These amounts have not yet been entered in the firm’s records.
c. The firm’s records indicate that a deposit of $944.07 made on June 30 does not appear on the bank statement.
d. A service charge of $14.34 and a debit memorandum of $120 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Robert Boley, a credit customer.)
INSTRUCTIONS
1. Prepare a bank reconciliation statement for the firm as of June 30, 2010.
2. Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries June 30, 2010.
Analyze: After all journal entries have been recorded and posted, what is the balance in the Cash account?
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