cash account for Fred\'s Co on June 1,2010, indicated a balance of $16,515. Duri
ID: 2435156 • Letter: C
Question
cash account for Fred's Co on June 1,2010, indicated a balance of $16,515. During June the total cash deposited was $40,150, and checks written totaled $43,600. The bank statement indicated a balance of $18,175 on June 30, 2010.a. checks outstanding totaled $6,840
b. a deposit of $4,275, representing receipts of June 30, had been made too late to appear on the statement.
c. a check for $640 was incorrectly charged by the bank as $460
d. a check for $80 returned with the statement had been recorded by Freds Co as $800. Check was for payment to Miliski Co account.
e Bank collected Fred Co $3,240 on a note left for collection. The face of the note was $3,000
f. Bank service charges for June accounted to $35.
g check for $1,560 from Chim co was returned because insufficient funds. Prepare bank reconciliation as of June 30. and Journalize
Explanation / Answer
Cash balance according to bank statement $ 18,175
Add deposit on June 30, not recorded by bank 4,275
$ 22,450
Deduct: Outstanding checks $6,840
Bank error in charging check as $460
instead of $640 180 7,020
Adjusted balance $ 15,430
Cash balance according to company’s records $ 13,065 (see note below)
Add: Proceeds of note collected by bank, including
$240 interest $3,240
Error in recording check 720 3,960
$ 17,025
Deduct bank service charges $ 35
Cheque from Chim returned 1,560 1,595
Adjusted balance $ 15,430
Note:
Opening Cash at Jume 1 $16,515
Add : Total Cash deposit 40,150
56,665
Less ; Total Cheques issued 43,600
Fred Co Cash Balance June 30 13,065
Journal Entries
Cash 3,960
Interest Revenue 240
Notes Payable 3,000
Accounts Payable - Miliski Co. 720
Bank Service Charges 35
Chim 1,560
To Cash 1,595
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.