Question:
Reydell Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account.
JUNE BANK STATEMENT:
BANK RECONCILIATION FOR PRECEDING MONTH:
Instructions
1. Prepare a bank reconciliation as of June 30. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable.
2. Journalize the necessary entries. The accounts have not been closed.
3. What is the amount of Cash that should appear on the balance sheet as of June 30?
4. Assume that a canceled check for $260 has been incorrectly recorded by the bank as $620. Briefly explain how the error would be included in a bank reconciliation and how it should becorrected.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Transcribed Image Text:
PAGE MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF DETROIT FROM 6/01/2o- TO 6/30/20- DETROIT, MI 48201-2500 (313)933-8547 BALANCE 9,447.20 9 DEPOSITS 8,691.77 20 WITHDRAWALS 8,014.37 REYDELL FURNITURE COMPANY 4 OTHER DEBITS 3,370.00CR AND CREDITS NEW BALANCE 18,494.60 - DATE --- BALANCE-- --- CHECKS AND OTHER DEBITS DEPOSITS No.731 162.15 No.736 345.95 690.25 6/01 9,829.35 6/02 No. 739 60.55 No.740 237.50 1,080.50 10,411.80 No. 741 6/04 495.15 No.742 501.90 854.17 10,268.92 6/09 No.743 671.30 No.744 506.88 840.50 9,931.24 No.745 298.66 MS 3,500.00 117.25 No.746 6/09 15,015.3ठ 450.90 640.13 12,134.30 No.748 No.749 MS 210.00 6/09 No.751 No.750 276.77 299.37 896.61 6/11 12,454.77 No.752 537.01 No.753 380.95 882.95 6/16 12,419.76 No.754 272.75 1,606.74 6/18 449.75 No.755 13,304.00 No.757 407.95 No.759 901.50 897.34 8/23 12,891.89 8/25 942.71 13,834.60 NSF 300.00 8/28 13,534.60 80 40.00 8/30 13,494.60 EC – ERROR CORRECTION OD- OVERDRAFT M8 - MIBCELLANEOUS P8 - PAYMENT STOPPED SC - SERVICE CHARGE NSF - NOT 8UFFICIENT FUNDS THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS I8 ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY.