The Chicago Scooter Company\'s bank statement for the month of June indicated a
ID: 2566394 • Letter: T
Question
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.
Explanation / Answer
(a) Chicago Scooter Company Bank Reconciliation 30-Jun Cash balance as per bank $3,350 Add: Deposit in transit $2,550 $5,900 Less: Outstanding checks $3,100 Adjusted cash balance per bank $2,800 Cash balance as per books $2,464 Add: Accounts payable error $27 collected note and interest $630 $657 $3,121 Less: Check printing $10 NSF Check $311 $321 $2,800 Note: Check No. 160 payable to Simon Company not a reconciling item (b) 30-Jun Cash $27 accounst payable $27 cash $630 Notes receivable $610 Interest receivable $20 Miscellaneous expenses $10 cash $10 Accounts receivable $311 Cash $311