Please answer.
Bank Reconciliation The Chicago Scooter Company’s bank statement for the month of June indicated a balance of $3,350. The company’s cash account in the general ledger showed a balance of $2,464 on June 30. Other relevant information includes the following:
Deposits in transit on June 30 total $2,550.
The bank statement shows a debit memorandum for a $10 check printing charge.
Check No. 160 payable to Simon Company was recorded in the accounting records for $124 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has an $18 credit balance and the check to them should have been $142.
Outstanding checks as of June 30 totaled $3,100.
Check No. 176 was correctly written and paid by the bank for $203. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $230.
The bank returned a NSF check in the amount of $311.
The bank included a credit memorandum for $630 representing a collection of a customer’s note. The principle portion was $610 and the interest portion was $20. The interest had not been accrued.
Required
a. Prepare the June bank reconciliation for Chicago Scooter Company.
b. Prepare any necessary adjusting entries.
a.
| CHICAGO SCOOTER COMPANY Bank Reconciliation June 30 |
|||
|---|---|---|---|
| Cash Balance per Bank | $Answer | ||
| Add: | AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | Answer | |
| Less: | AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | Answer | |
| AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | $Answer | ||
| Cash Balance per Books | $Answer | ||
| Add: | Accounts Payable Error | $Answer | |
| Add: | AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | Answer | Answer |
| Less: | AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | Answer | |
| Less: | NSF Check | Answer | Answer |
| AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | $Answer | ||
b.
| GENERAL JOURNAL | ||||
|---|---|---|---|---|
| Date | Description | Debit | Credit | |
| June | 30 | AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | $Answer | $Answer |
| AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | ||
| To correct check error in recording check No. 176. | ||||
| 30 | AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | |
| AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | ||
| Interest Earned | Answer | Answer | ||
| To record note collection by bank. | ||||
| 30 | AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | |
| AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | ||
| To record check printing charge. | ||||
| 30 | AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | |
| AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | ||
| To record NSF check. | ||||
