Prepare a bank reconciliation at June 30. (List items that increase balance as p

Question

Prepare a bank reconciliation at June 30. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 52.75.)

Villa Spa shows a general ledger balance for the Cash account of $3,969.85 on June 30 and the bank statement as of that date indicates a balance of $4,150.00. When the statement was compared with the cash records, the following facts were determined:
1. There were bank service charges for June of $25.00. 2. A bank memo stated that Bao Dai’s note for $900 and interest of $36.00 had been collected on June 29, and the bank had charged $5.50 for the collection Any interest revenue has not been accrued. 3. Deposits in transit June 30 were $2,890.00. 4. Cheques outstanding on June 30 totalled $2,136.05. 5. On June 29, the bank had charged Villa Spa’s account for a customer’s NSF cheque amounting to $453.20. 6. A customer’s cheque received as a payment on account of $90 had been entered as $60 in the cash receipts journal by Villa Spa on June 15. 7. Cheque no. 742 in the amount of $491 had been entered in the books as $419, and cheque no. 747 in the amount of $58.20 had been entered as $582.00. Both cheques were issued as payments on account. 8. In May, the bank had charged a $27.50 Wella Spa cheque against the Villa Spa account. The June bank statement indicated that the bank had reversed this charge and corrected its error.

Explanation / Answer

Balance per bank, June 30 4150 Add: Deposits in transit 2890 Less: Outstanding cheques 2136.05 Adjusted cash balance, June 30 per bank 4903.95 Balance per books, June 30 3969.85 Add: Note collection 930.5 Error on cheque no. 747 523.8 Error in recording deposit 30 1484.3 5454.15 Less: NSF cheque 453.2 Bank service charges 25 Error on cheque no. 742 72 550.2 Adjusted balance, June 30 per books 4903.95

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