On June 30, Bramble Corporation showed a cash balance on their books of $11,823. The bank statement from the company’s bank showed a month end balance of $15,545. 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 Bramble Corporation account for $320 on June 19. This deposit did not belong to Bramble, 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 Bramble account for service charges.
6.		The bank cleared cheque # 152 for $950; however, the cheque was recorded in Bramble’s records at $930. Research showed the bank was correct, and the cheque was recorded incorrectly in Bramble’s books. The cheque was written in payment of supplies expense.
7.		A cheque for $590 from one of Bramble’s customers was rejected by the bank due to insufficient funds (NSF).

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

Bramble Corporation

Bank Reconciliation

As at June 30

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

 

Transcribed Image Text:

Balance per bank statement, June 30 Add Outstanding deposit Less Outstanding cheques Bank error Correct cash balance Balance per books, June 30 Add Collection of note receivable Interest on note receivable Less Book error Bank service charges NSF cheque Correct cash balance 4 SA $ 2,995 320 2,160 120 20 27 590 $ 14,146 1,600 15,746 3,315 12,431 10,788 2,280 13,068 637 12,431 Balance per bank statement, June 30 Add Outstanding deposit Less Outstanding cheques Bank error Correct cash balance Balance per books, June 30 Add Collection of note receivable Interest on note receivable Less Book error Bank service charges NSF cheque Correct cash balance 4 SA $ 2,995 320 2,160 120 20 27 590 $ 14,146 1,600 15,746 3,315 12,431 10,788 2,280 13,068 637 12,431

Answer rating: 100% (QA)

Journal entries required to adjust the cash account at June 30 Account Titles ... View the full answer