Question:
Oneida 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.
CASH ACCOUNT:
Balance as of June 1 ................. $9,317.40
CASH RECEIPTS FOR MONTH OF JUNE ...... $9,524.16
DUPLICATE DEPOSIT TICKETS:
Date and amount of each deposit in June:
CHECKS WRITTEN:
Number and amount of each check issued in June:
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 $270 has been incorrectly recorded by the bank as $720. 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:
Date Amount 1,080.50 854.17 845.00 Date Amount 896.61 882.95 1,607.64 Date Amount S897.34 942.71 1,517.24 June 1 June 10 15 17 June 22 24 30 Check No. 740 741 742 743 744 745 746 Total amount of checks issued in June Amount $237.50 495.15 501.90 671.30 560.88 117.25 298.66 Check No. 747 748 749 750 751 752 753 Amount Void $450.90 640.13 276.77 299.37 537.01 380.95 Check No. 754 755 756 757 758 759 760 Amount 449.75 272.75 113.95 407.95 259.60 901.50 486.39 $8,359.66 BANK RECONCILIATION FOR PRECEDING MONTH: Oneida Furniture Company Bank Reconciliation May 31, 20- Cash balance according to bank statement.......... . . . . . . Add deposit for May 31, not recorded by bank........ . . . . .. 9,447.20 690.25 $10,137.45 . . Deduct outstanding checks: 345.95 251.40 60.55 820.05 9,317.40 9,352.50 35.10 9,317.40 JUNE BANK STATEMENT: PAGE 1 MEMBER FDIC ACCOUNT NUMBER FROM 8/01/20 TO 6/30/20- BALANCE AMERICAN NATIONAL BANK OF CHICAGO CHICAGO, IL 60603 (312)441-1239 9,447.20 8,691 .γγ 8,014.3Y 9 DEPOSITS 20 WITHDRAWALS ONEIDA FURNITURE COMPANY 4 OTHER DEBITS AND CREDITS 3,3γ0.00CR NEW BALANCE 13,494.80 -CHECKS AND OTHER DEBITS--DEPOSITSDATE--BALANCE. 890.28 1,080.60 884·17 840.80 No.Y48 117.28 No.48 298.88 MS 3,B00.00 No. 749 840.13 MS 210.00 898.81 882.98 1,608.74 89.34 942.71 8/01 8/02 8/04 8/09 8/09 8/09 No.731 182.18 No.736 348.98 No.739 No.741 496.1 No.742 801.90 No.743 871.30 No.744 608.88 9,629.38 10,411.80 10,288.92 9,931.24 13,016.33 12,134.30 12,484.?Y 12,419.76 13,304.00 12,891.89 13,834.80 13,634.80 13,494.60 60.88 No.740 237.60 No.748 480.90 No.780 278. No.76l 299.37 No.762 3.01 No.783 380.96 No.784 449.78 No.785 272.76 No.787 40.96 No.789 901.60 6/16 6/18 6/23 8/28 8/28 6/30 NSF 300.00 SC 40.00 EC ERROR CORRECTION ODOVERDRAFT PB PAYMENT STOPPED 8C -SERVICE CHARGE NSF NOT SUFFICIENT FUNDS THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS 18 E38ENTIAL ANY ERROR OR EXCEPTION BHOULD BE REPORTED IMMEDIATELY