BANK RECONCILIATION FOR PRECEDING MONTH: Beeler Furniture Company Bank Reconciliation May 31 20Y2 Cash balance according to bank statement.... Add deposit for May 31, not recorded by bank.. Deduct outstanding checks: $ 947.20 690.25 No. 731 $162.15 736. 345.95 738 251.40 739 60.55 820.05 $ 9,317.40 $ 9,352.50 Adjusted balance... Cash balance according to company's records. Deduct bank service charges...... Adjusted balance.. .... 35.10 $ 9,317.40 JUNE BANK STATEMENT: PAGE 1 MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF CHICAGO FROM a/01/20Ya TO e/30/2oYa CHICAGO, IL GOG02 a12) 41-1229 9,447.20 BALANCE 9 DEPOSITS 8,091.77 20 WITHDRAWALS BEELER FURNITURE COMPANY 4 OTHER DEBITS AND CREDITS 3,086.00CR NEW BALANCE 13,624.71 --- CHRCKS AND OTHER DERITS- DEPOSITS --- DATE --- BALANCE-- No. 731 182.18 No. 736 348.08 a/01 No. 740 No. 742 No. 744 9,629.36 10,411.80 10,808.92 No. 730 80.58 R37.B0 1,080.BO 654.17 No.741 496.18 801.90 6/04 No.743 071.30 B06.00 840.80 6/00 9,03184 No.748 117.20 No. 748 296.00 MS 3,600.00 6/00 13,018.33 No. 748 No. 750 480.90 No. 740 640.13 MB R10.00 8/00 12,134.30 No. 781 No. 703 No. 7B8 12,484.77 12,410.70 276.77 290 37 696.61 0/11 No. TER ES7.01 360.00 682.00 0/10 No. T64 No T87 449.T0 1,600.74 8/18 13,304.00 407.06 No. 700 486.30 897.34 13,307.00 14,849.71 942.71 NSP BE0.00 13,000.71 13,624.71 78.00 6/30 OD - OVERDRAPT P8- PAYMENT TOPPED 20 - ERROR CORRBCTION MB - MIBCELLANBOUS NSP- NOT SUPPICIENT FUNDS 3C- SERVICE CHARGE ... THE HBOONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS S RSEENTIAL ANY HEROR OR EXCEPTON SHOUD EE REPORTED IMMDIATRLY.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 7.3BE

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Question

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 of june 1	$9,317.40
Cash receipts fro 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
june 3	854.17	june 15	882.95	june 24	947.21
june 8	840.50	june 17	1,606.74	june 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	573.01	759	901.50
746	298.66	753	380.95	760	486.39
Total amount of check issued in june					$8,395.66

BANK RECONCILIATION FOR PRECEDING MONTH:

REFER IMAGE

Instructions
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.
2. Journalize the necessary entries. The accounts have not been closed.
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.

JUNE BANK STATEMENT:

REFER IMAGE

BANK RECONCILIATION FOR PRECEDING MONTH:
Beeler Furniture Company
Bank Reconciliation
May 31 20Y2
Cash balance according to bank statement....
Add deposit for May 31, not recorded by bank..
Deduct outstanding checks:
$ 947.20
690.25
No. 731
$162.15
736.
345.95
738
251.40
739
60.55
820.05
$ 9,317.40
$ 9,352.50
Adjusted balance...
Cash balance according to company's records.
Deduct bank service charges......
Adjusted balance..
....
35.10
$ 9,317.40

JUNE BANK STATEMENT:
PAGE 1
MEMBER FDIC
ACCOUNT NUMBER
AMERICAN NATIONAL BANK
OF CHICAGO
FROM a/01/20Ya TO e/30/2oYa
CHICAGO, IL GOG02 a12) 41-1229
9,447.20
BALANCE
9 DEPOSITS
8,091.77
20 WITHDRAWALS
BEELER FURNITURE COMPANY
4 OTHER DEBITS
AND CREDITS
3,086.00CR
NEW BALANCE
13,624.71
--- CHRCKS AND OTHER DERITS-
DEPOSITS --- DATE --- BALANCE--
No. 731
182.18
No. 736
348.08
a/01
No. 740
No. 742
No. 744
9,629.36
10,411.80
10,808.92
No. 730
80.58
R37.B0
1,080.BO
654.17
No.741
496.18
801.90
6/04
No.743
071.30
B06.00
840.80
6/00
9,03184
No.748
117.20
No. 748
296.00
MS 3,600.00
6/00
13,018.33
No. 748
No. 750
480.90
No. 740
640.13
MB R10.00
8/00
12,134.30
No. 781
No. 703
No. 7B8
12,484.77
12,410.70
276.77
290 37
696.61
0/11
No. TER
ES7.01
360.00
682.00
0/10
No. T64
No T87
449.T0
1,600.74
8/18
13,304.00
407.06
No. 700
486.30
897.34
13,307.00
14,849.71
942.71
NSP BE0.00
13,000.71
13,624.71
78.00
6/30
OD - OVERDRAPT
P8- PAYMENT TOPPED
20 - ERROR CORRBCTION
MB - MIBCELLANBOUS
NSP- NOT SUPPICIENT FUNDS
3C- SERVICE CHARGE
...
THE HBOONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS S RSEENTIAL
ANY HEROR OR EXCEPTON SHOUD EE REPORTED IMMDIATRLY.

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