Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository after banking hours. The data required to reconcile the bank statement as of June 30 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account. CASH ACCOUNT: Balance as of June 1 $9,317.40 CASH RECEIPTS FOR MONTH OF JUNE $9,223.76 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June: Date Amount Date Amount Date Amount June 1 $1,080.50 June 10 $996.61 June 22 $897.34 3 854.17 15 882.95 24 947.21 8 840.50 17 1,606.74 30 1,117.74 CHECKS WRITTEN: Number and amount of each check issued in June: Check No. Amount Check No. Amount Check No. Amount 740 $237.50 747 Void 754 $449.75 741 495.15 748 $450.90 755 272.75 742 501.90 749 640.13 756 113.95 743 761.30 750 276.77 757 407.95 744 506.88 751 299.37 758 259.60 745 117.25 752 537.01 759 901.50 746 298.66 753 380.95 760 486.39 Total amount of checks issued in June: $8,395.66 BANK RECONCILIATION FOR PRECEDING MONTH: BEELER FURNITURE COMPANY Bank Reconciliation May 31, 20Y2 1 Cash balance according to bank statement $9,447.20 2 Add deposit for May 31, not recorded by bank 690.25 3 Deduct outstanding checks: 4 No. 731 $162.15 5 No. 736 345.95 6 No. 738 251.40 7 No. 739 60.55 (820.05) 8 Adjusted balance $9,317.40 9 10 Cash balance according to company’s records $9,352.50 11 Deduct bank service charges (35.10) 12 Adjusted balance $9,317.40 JUNE BANK STATEMENT: Click here to view. Required: 1. Prepare a bank reconciliation as of June 30, 20Y2. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. Be sure to complete the statement heading. Refer to the Instructions, Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. To enter the Check number, please enter “No.” preceeding the number. “Deduct”, “Add”, or colons (:) will automatically appear if required. Enter all amounts as positive numbers. Round your answers to two decimal places. 2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answers to two decimal places. 3. What is the amount of Cash that should appear on the balance sheet as of June 30? 4. Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected.

Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository after banking hours. The data required to reconcile the bank statement as of June 30 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account. CASH ACCOUNT: Balance as of June 1 $9,317.40 CASH RECEIPTS FOR MONTH OF JUNE $9,223.76 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June: Date Amount Date Amount Date Amount June 1 $1,080.50 June 10 $996.61 June 22 $897.34 3 854.17 15 882.95 24 947.21 8 840.50 17 1,606.74 30 1,117.74 CHECKS WRITTEN: Number and amount of each check issued in June: Check No. Amount Check No. Amount Check No. Amount 740 $237.50 747 Void 754 $449.75 741 495.15 748 $450.90 755 272.75 742 501.90 749 640.13 756 113.95 743 761.30 750 276.77 757 407.95 744 506.88 751 299.37 758 259.60 745 117.25 752 537.01 759 901.50 746 298.66 753 380.95 760 486.39 Total amount of checks issued in June: $8,395.66 BANK RECONCILIATION FOR PRECEDING MONTH: BEELER FURNITURE COMPANY Bank Reconciliation May 31, 20Y2 1 Cash balance according to bank statement $9,447.20 2 Add deposit for May 31, not recorded by bank 690.25 3 Deduct outstanding checks: 4 No. 731 $162.15 5 No. 736 345.95 6 No. 738 251.40 7 No. 739 60.55 (820.05) 8 Adjusted balance $9,317.40 9 10 Cash balance according to company’s records $9,352.50 11 Deduct bank service charges (35.10) 12 Adjusted balance $9,317.40 JUNE BANK STATEMENT: Click here to view. Required: 1. Prepare a bank reconciliation as of June 30, 20Y2. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. Be sure to complete the statement heading. Refer to the Instructions, Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. To enter the Check number, please enter “No.” preceeding the number. “Deduct”, “Add”, or colons (:) will automatically appear if required. Enter all amounts as positive numbers. Round your answers to two decimal places. 2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answers to two decimal places. 3. What is the amount of Cash that should appear on the balance sheet as of June 30? 4. Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.4.3P

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CASH ACCOUNT:
Balance as of June 1	$9,317.40
CASH RECEIPTS FOR MONTH OF JUNE	$9,223.76

DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June:

Date	Amount	Date	Amount	Date	Amount
June 1	$1,080.50	June 10	$996.61	June 22	$897.34
3	854.17	15	882.95	24	947.21
8	840.50	17	1,606.74	30	1,117.74

CHECKS WRITTEN: Number and amount of each check issued in June:

Check No.	Amount	Check No.	Amount	Check No.	Amount
740	$237.50	747	Void	754	$449.75
741	495.15	748	$450.90	755	272.75
742	501.90	749	640.13	756	113.95
743	761.30	750	276.77	757	407.95
744	506.88	751	299.37	758	259.60
745	117.25	752	537.01	759	901.50
746	298.66	753	380.95	760	486.39

Total amount of checks issued in June: $8,395.66

BANK RECONCILIATION FOR PRECEDING MONTH:

BEELER FURNITURE COMPANY

Bank Reconciliation

May 31, 20Y2

1	Cash balance according to bank statement		$9,447.20
2	Add deposit for May 31, not recorded by bank		690.25
3	Deduct outstanding checks:
4	No. 731	$162.15
5	No. 736	345.95
6	No. 738	251.40
7	No. 739	60.55	(820.05)
8	Adjusted balance		$9,317.40
9
10	Cash balance according to company’s records		$9,352.50
11	Deduct bank service charges		(35.10)
12	Adjusted balance		$9,317.40

JUNE BANK STATEMENT:

Click here to view.

	Required:
1.	Prepare a bank reconciliation as of June 30, 20Y2. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. Be sure to complete the statement heading. Refer to the Instructions, Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. To enter the Check number, please enter “No.” preceeding the number. “Deduct”, “Add”, or colons (:) will automatically appear if required. Enter all amounts as positive numbers. Round your answers to two decimal places.
2.	Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answers to two decimal places.
3.	What is the amount of Cash that should appear on the balance sheet as of June 30?
4.	Assume that a canceled check for $390 has been incorrectly recorded by the bank as $930. Briefly explain how the error would be included in a bank reconciliation and how it should be corrected.

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