The bank statement for the Mini Mart Corporation shows a balance of $ 1,330 on June 30, but the company’s cash in bank account had a balance of $ 499 on the same date. Comparison of the amounts reported on the bank statement with the company’s records indicates (a) deposits of $ 160, representing cash receipts of June 30, that did not appear on the bank statement; (b) outstanding cheques totalling $ 240; (c) bank service charges for June amounting to $ 9; (d) collection of a note receivable by the bank on behalf of the company for $ 800 plus $ 40 in interest revenue; and (e) a cheque for $ 80 from a customer that was returned with the bank statement and marked NSF.
Required:
1. Prepare a bank reconciliation statement for Mini Mart Corporation as at June 30.
2. Prepare any journal entries that should be made as a result of the bank reconciliation.
3. Why is it important to reconcile the balance in the bank statement with the cash balance in the company’s records?
4. What is the amount of cash that the company should report on its statement of financial position at June 30?