On June 30, 2010, Roddick Company had a cash balance in its general ledger of $11,595. The company’s bank statement from Bank One showed a June 30 balance of $12,540. The following facts have come to your attention:
a. Roddick’s June 30 deposit of $2,500 was not included on the bank statement because it was dropped in the night depository after bank hours on June 30.
b. The bank’s general service charge for the month was $40.
c. The bank collected a note receivable of $2,000 for Roddick Company along with an additional $58 for interest. The bank deducted a $10 fee for this service. Roddick Company had not accrued any interest on the note.
d. Roddick’s bookkeeper erroneously recorded a payment to Federer Company for $892 as $829. The check cleared the bank for the correct amount of $892.
e. Roddick’s outstanding checks at June 30 totaled $1,500.

1. Prepare a bank reconciliation as of June 30.
2. Prepare the necessary adjustment to the accounting equation to update the records of Roddick.

  • CreatedSeptember 01, 2014
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