Chapter 7 Homework- Bank Rec The following informationpertains to the bank transactions of Midwestern Company: a Cash on the books as of June 30 was $519. Cash asshown on the bank statement for the same date was $1,440 b A deposit of $260, representing cash receipts as ofJune 30, did not appear on the bank statement c Outstanding checks totaled $240 d Bank service charges for June amounted to $15 e The bank collected for Midwestern Company $1040(which includes $40 interest) on a note left for collection f An NSF check for $84 from a customer, Joe S., wasreturned with the statement Required 1 Prepare the bank reconciliation for MidwesternCompany as of June 30 2 State the amount of cash that would appear on thebalance sheet as of June 30 Midwestern Company Bank Reconciliation June 30, 2015
| Chapter 7 Homework- Bank Rec | ||||||||||
| The following informationpertains to the bank transactions of Midwestern Company: | ||||||||||
| a | Cash on the books as of June 30 was $519. Cash asshown on the bank statement for the same date was $1,440 | |||||||||
| b | A deposit of $260, representing cash receipts as ofJune 30, did not appear on the bank statement | |||||||||
| c | Outstanding checks totaled $240 | |||||||||
| d | Bank service charges for June amounted to $15 | |||||||||
| e | The bank collected for Midwestern Company $1040(which includes $40 interest) on a note left for collection | |||||||||
| f | An NSF check for $84 from a customer, Joe S., wasreturned with the statement | |||||||||
| Required | ||||||||||
| 1 | Prepare the bank reconciliation for MidwesternCompany as of June 30 | |||||||||
| 2 | State the amount of cash that would appear on thebalance sheet as of June 30 | |||||||||
| Midwestern Company | ||||||||||
| Bank Reconciliation | ||||||||||
| June 30, 2015 | ||||||||||
Related questions
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $14,110. The bank statement indicated a balance of $16,730 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
Checks outstanding totaled $6,020.
A deposit of $6,270, representing receipts of June 30, had been made too late to appear on the bank statement.
The bank collected $3,260 on a $3,100 note, including interest of $160.
A check for $880 returned with the statement had been incorrectly recorded by Pala Medical Co. as $800. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
A check drawn for $30 had been erroneously charged by the bank as $300.
Bank service charges for June amounted to $40.
1. Prepare a bank reconciliation.
| Pala Medical Co. | ||||||||||||||||||||||||||
| Bank Reconciliation | ||||||||||||||||||||||||||
| June 30, 20Y1 | ||||||||||||||||||||||||||
| Cash balance according to bank statement | $ | |||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Deposit of June 30, not recorded by bank | $ | |||||||||||||||||||||||||
| Bank error in charging check as $300 instead of $30 | ||||||||||||||||||||||||||
| Outstanding checks | ||||||||||||||||||||||||||
| Total adjustments | ||||||||||||||||||||||||||
| Adjusted balance | $ | |||||||||||||||||||||||||
| Cash balance according to company's records | $ | |||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Proceeds of note collected by bank, including $160 interest | $ | |||||||||||||||||||||||||
| Error in recording check. | ||||||||||||||||||||||||||
| Bank service charges | ||||||||||||||||||||||||||
| Total adjustments | ||||||||||||||||||||||||||
| Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.
| $ | |||||||||||||||||||||||||
