The cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. There were bank service charges for June of $120. A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to the bank for collection.) 3. Receipts for June 30 for $16,272 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $10,253.04. 5. 6. The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29. A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash receipts journal by Waterway on June 15. 7. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $279.36 had been entered as $2,793.60. Both checks had been issued to pay for purchases and were payments on Waterway's Accounts Payable. (a) Prepare a bank reconciliation dated June 30, 2025, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g. 125.62.)
The cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. There were bank service charges for June of $120. A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to the bank for collection.) 3. Receipts for June 30 for $16,272 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $10,253.04. 5. 6. The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29. A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash receipts journal by Waterway on June 15. 7. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $279.36 had been entered as $2,793.60. Both checks had been issued to pay for purchases and were payments on Waterway's Accounts Payable. (a) Prepare a bank reconciliation dated June 30, 2025, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g. 125.62.)
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
Related questions
Question
![The cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date
showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined.
1.
2.
There were bank service charges for June of $120.
A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had
made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to
the bank for collection.)
3.
Receipts for June 30 for $16,272 were not deposited until July 2.
4.
Checks outstanding on June 30 totaled $10,253.04.
5.
6.
The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29.
A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash
receipts journal by Waterway on June 15.
7.
Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of
$279.36 had been entered as $2,793.60. Both checks had been issued to pay for purchases and were payments on
Waterway's Accounts Payable.
(a)
Prepare a bank reconciliation dated June 30, 2025, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g.
125.62.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b41e07f-e39f-4bfb-9fc6-410ea6b6db34%2F27f896f4-2024-4e1c-851f-8abe366970b5%2F53cvdanl_processed.png&w=3840&q=75)
Transcribed Image Text:The cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date
showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined.
1.
2.
There were bank service charges for June of $120.
A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had
made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to
the bank for collection.)
3.
Receipts for June 30 for $16,272 were not deposited until July 2.
4.
Checks outstanding on June 30 totaled $10,253.04.
5.
6.
The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29.
A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash
receipts journal by Waterway on June 15.
7.
Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of
$279.36 had been entered as $2,793.60. Both checks had been issued to pay for purchases and were payments on
Waterway's Accounts Payable.
(a)
Prepare a bank reconciliation dated June 30, 2025, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g.
125.62.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning