The following information is for Jae Kim, Ltd. in June:
1. Cash balance on June 30 in the ledger was $12,450, and cash balance on June 30’s bank statement was $14,860.
2. Deposit in transit for the amount of $1,500 from May 31 was recorded in the bank statement on June 1. Deposit in transit for the amount of $1,800 from June 30 was not recorded in the June bank statement.
3. Cheque 103 for the amount of $1,720 was outstanding on May 31 and was still outstanding on June 30.
4. Cheque 125 for the amount of $680 was outstanding on June 30.
5. EFT collection of $1,200 from a tenant for his rent payment was shown on June 2 in the bank statement.
6. NSF cheque for the amount of $760 and an NSF fee of $20 were included in the bank statement.
7. Interest and bank service charges for June were $15 and $35 respectively.
8. A cheque for cash sales for the amount of $1,600 was mistakenly recorded as $160 in the books.
1. Prepare Jae Kim’s bank reconciliation on June 30. What is the reconciled book balance?
2. Record the entries to update the Cash account balance. Include an explanation for each entry.
3. If the entries were not recorded in (2), what is the impact on each of the assets, liabilities, and shareholders’ equity accounts?

  • CreatedJuly 08, 2015
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