Dempsey Corporation keeps all its cash in a checking account. Presented below are the company's bank...

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Dempsey Corporation keeps all its cash in a checking account. Presented below are the company's bank reconciliation prepared at the end of May, the general ledger account for cash, and a summary of the company's bank statement for June: Dempsey Corporation Bank Reconciliation May 31 Balance per bank statement Add: Deposit in transit Deduct: Outstanding checks Correct cash balance Balance per books Deduct: Bank service charge Correct cash balance Balance, June 1 P 6,057 June Receipts 26,182 Balance, June 1 Deposits shown for June CASH P Note and interest collected during June Checks that cleared during June June Service charge Balance, June 30 P 717 P P Summary of Dempsey Corporation's Bank Statement for June 6,250 225 6,475 418 6.057 P June Disbursements P25,679 } 6.072 15 6.057 6,250 25,692 1,575 25,707) 17) 7,793 Additional information: 1. During June, Dempsey Corporation incorrectly recorded two checks. Check no 507 was drawn for P233 but recorded as P323; check no. 521 was drawn for P180 but recorded as P18. Both checks were issued in payment of accounts payable and cleared the bank in June. 2. During June the bank erroneously charged a P210 check of Kamia Company to Dempsey Corporation's account. 3. Of the P1,575 note and interest collected by the bank during June, P75 represents interest, all of which Dempsey earned during the current year. The company has not yet recorded the collection. Required: 1. Prepare a June 30, bank reconciliation. 2. Prepare journal entries to bring Dempsey Corporation's accounting records up to date. 3. What amount should Dempsey report as cash on the balance sheet dated June 30? Dempsey Corporation keeps all its cash in a checking account. Presented below are the company's bank reconciliation prepared at the end of May, the general ledger account for cash, and a summary of the company's bank statement for June: Dempsey Corporation Bank Reconciliation May 31 Balance per bank statement Add: Deposit in transit Deduct: Outstanding checks Correct cash balance Balance per books Deduct: Bank service charge Correct cash balance Balance, June 1 P 6,057 June Receipts 26,182 Balance, June 1 Deposits shown for June CASH P Note and interest collected during June Checks that cleared during June June Service charge Balance, June 30 P 717 P P Summary of Dempsey Corporation's Bank Statement for June 6,250 225 6,475 418 6.057 P June Disbursements P25,679 } 6.072 15 6.057 6,250 25,692 1,575 25,707) 17) 7,793 Additional information: 1. During June, Dempsey Corporation incorrectly recorded two checks. Check no 507 was drawn for P233 but recorded as P323; check no. 521 was drawn for P180 but recorded as P18. Both checks were issued in payment of accounts payable and cleared the bank in June. 2. During June the bank erroneously charged a P210 check of Kamia Company to Dempsey Corporation's account. 3. Of the P1,575 note and interest collected by the bank during June, P75 represents interest, all of which Dempsey earned during the current year. The company has not yet recorded the collection. Required: 1. Prepare a June 30, bank reconciliation. 2. Prepare journal entries to bring Dempsey Corporation's accounting records up to date. 3. What amount should Dempsey report as cash on the balance sheet dated June 30?

Answer rating: 100% (QA)

1 Bank Reconciliation as of June 30 Balance per bank statement June 30 P7793 Add Deposits shown for ... View the full answer