Question

The cash account for Junkey's Salvage at July 1, 2015, indicated a balance of $14,590. During July, the total cash deposited was $28,680, and cheques written totalled $33,500. The bank statement indicated a balance of $16,750 on July 31. Comparing the bank statement, the cancelled cheques, and the accompanying memos with the records revealed the following reconciling items:
a. Cheques outstanding totalled $11,730.
b. A deposit of $5,100, representing receipts of July 31, had been made too late to appear on the bank statement.
c. The bank had collected for Junkey's Salvage $1,675 on a note left for collection. The principal amount of the note was $1,500.
d. A cheque for $370 returned with the statement had been incorrectly charged by the bank as $730.
e. A cheque for $320 returned with the statement had been recorded by Junkey's Salvage as $230. The cheque was for the payment of an obligation to Ranchwood Co. on account.
f. Bank service charges for July amounted to $25.
g. A cheque for $850 from Hallock Co. was returned by the bank because of insufficient funds.
Instructions
1. Prepare a bank reconciliation as at July 31.
2. Journalize the necessary entries. The accounts have not been closed.


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  • CreatedSeptember 15, 2015
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