Natalie decides that she cannot afford to hire John to do her accounting. One way that she


Natalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not have any errors and is accurate and up-to-date is to prepare a bank reconciliation at the end of each month. Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2012 using the following information.

Additional information:

1. On May 31, there were two outstanding checks: #595 for $238 and #599 for $361.

2. Premier Bank made a posting error to the bank statement: check #603 was issued for $425, not $452.

3. The deposit made on June 20 was for $125 that Natalie received for teaching a class.

Natalie made an error in recording this transaction.

4. The electronic funds transfer (EFT) was for Natalie’s cell phone use. Remember that she uses this phone only for business.

5. The NSF check was from Ron Black. Natalie received this check for teaching a class to Ron’s children. Natalie contacted Ron and he assured her that she will receive a check in the mail for the outstanding amount of the invoice and the NSF bank charge.


(a) Prepare Cookie Creations’ bank reconciliation for June 2012.

(b) Prepare any necessary general journal entries.

(c) If a balance sheet is prepared for Cookie Creations Inc. at June 30, 2012, what balance will be reported as cash in the current assets section?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting Principles

ISBN: 978-1118875056

12th edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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