The cash account for Jenny's Sports Co. on June 1, 2015, indicated a balance of $16,515. During June, the total cash deposited was $42,150, and cheques written totalled $45,600. The bank statement indicated a balance of $18,175 on June 30, 2015. Comparing the bank statement, the cancelled cheques, and the accompanying memos with the records revealed the following reconciling items:
a. Cheques outstanding totalled $4,840.
b. A deposit of $2,275, representing receipts of June 30, had been made too late to appear on the bank statement.
c. A cheque for $640 had been incorrectly charged by the bank as $460.
d. A cheque for $80 returned with the statement had been recorded by Jenny's Sports Co. as $800. The cheque was for the payment of an obligation to Miliski Co. on account.
e. The bank had collected for Jenny's Sports Co. $4,350 on a note left for collection.
The principal amount of the note was $4,000.
f. Bank service charges for June amounted to $35.
g. A cheque for $2,670 from ChimTech Co. was returned by the bank because of insuf ficient funds.
1. Prepare a bank reconciliation as at June 30.
2. Journalize the necessary entries. The accounts have not been closed.

  • CreatedSeptember 15, 2015
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