On June 30, ANB Holdings Inc. showed a cash balance on their books of $10,788. The bank statement from the company’s bank showed a month end balance of $14,146. On reviewing the bank statement, the following items were discovered:

1.		A deposit made on June 29 for $1,600 did not appear on the bank statement.
2.		Cheques written in the month of June but that did not appear on the bank statement were as follows:

Cheque # 159		$1,330
Cheque # 160		27
Cheque # 168		208
Cheque # 170		300
Cheque # 171		1,130

3.		The bank credited ANB Holdings Inc. account for $320 on June 19. This deposit did not belong to ANB,but belonged to another company and was posted in error.
4.		The bank statement showed receipt of a wire transfer of $2,160 in payment of a note receivable, as well as $120 interest.
5.		According to the bank statement, $27 was deducted from ANB account for service charges.
6.		The bank cleared cheque # 152 for $950; however, the cheque was recorded in ANB’s records at $930. Research showed the bank was correct, and the cheque was recorded incorrectly in ANB’s books. The cheque was written in payment of supplies expense.
7.		A cheque for $590 from one of ANB’s customers was rejected by the bank due to insufficient funds (NSF).

Required:

a) Prepare a bank reconciliation to the correct cash balance at June 30.

b) Prepare journal entries required to adjust the cash account at June 30.

Answer rating: 100% (QA)

a ANB Holdings Inc Bank Reconciliation As at June 30 b Balance per bank statement ... View the full answer