SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Date Account Titles and Explanat
ID: 340709 • Letter: S
Question
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
June 30
June 30
The cash account of Culver Corporation shows a ledger balance of $3,964.85 on June 30, 2017. The bank statement as at that date indicates a balance of $4,130. When the statement was compared with the cash records, the following facts were determined:1. There were bank service charges for June of $27. 2. A bank memo stated that Bao Dai’s note for $920 and interest of $39 had been collected on June 29, and the bank had made a charge of $6.90 on the collection. (No entry had been made on Culver’s books when Bao Dai’s note was sent to the bank for collection.) 3. Receipts for June 30 of $2,880 were not deposited until July 2. 4. Cheques outstanding on June 30 totalled $2,121.05. 5. On June 29, the bank had charged Culver Corporation’s account for a customer’s uncollectible cheque amounting to $442.20. 6. A customer’s cheque for $70 had been entered as $50 in the cash receipts journal by Culver Corporation on June 15 as a collection on account. 7. Cheque no. 742 in the amount of $495 had been entered in the cashbook as $459, and cheque no. 747 in the amount of $50.80 had been entered as $508. Both cheques were issued to pay for cash purchases of equipment. 8. In May 2017, the bank had charged a $22.50 Bridgeport Corp. cheque against the Culver Corporation account. The June bank statement indicated that the bank had reversed this charge and corrected its error.
Explanation / Answer
Solution:
Culver Corporation Bank Reconciliation - June 30 Bank's Cash balance Company's cash balance Particulars Amount Particulars Amount Ending balance as per Bank Statements $4,130.00 Ending Balance as per cash books $3,964.85 Additions: Additions: Outstanding cash receipt $2,880.00 Note Collected (920+39-6.90) $952.10 Incorrect recording of customer check ($70 - $50) $20.00 Incorrect recording of check no 747 ($508 - $50.80) $457.20 Deductions: Deductions: Outstanding Checks $2,121.05 NSF Cheque $442.20 Service Charge $27.00 Incorrect recording of check no 742 ($495 - $459) $36.00 Up to date cash balance as per bank $4,888.95 Up to date cash balance as per books $4,888.95Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.