Question: The cash data of Richmond Automotive for June 2014 follow

The cash data of Richmond Automotive for June 2014 follow:

Richmond Automotive received the following bank statement on June 30, 2014:

Additional data for the bank reconciliation include the following:
a. The EFT deposit was a receipt of monthly rent. Te EFT debit was a monthly insurance payment.
b. The unauthorized signature check was received from a customer and returned by the bank unpaid.
c. The correct amount of check number 3115, a payment on account, is $1,380. (Richmond Automotive’s accountant mistakenly recorded the check as $1,830.)

1. Prepare the Richmond Automotive bank reconciliation at June 30, 2014.
2. Prepare the journal entries required at June 30, 2014.
3. Describe how a bank account and the bank reconciliation help the general manager control Richmond Automotive’scash.
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  • CreatedJuly 25, 2014
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