Beeler Furniture Company deposits all cash receipts each Wed

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 as of June 1 CASH RECEIPTS FOR MONTH OF JUNE $9,317.40 $9,223.76 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June Date Amount 996.61 882.95 1,606.74 Amount $897.34 947.21 1,117.74 Date Amount Date $1,080.50 854.17 840.50 June 10 15 17 June 22 24 30 June 1 8

Solution

Answer 1. BEELER FURNITURE COMPANY Bank Recocilation JUNE 30, 20Y2 Bank\'s Cash Balance Company\'s Cash Balance Per Bank Statement          13,624.71 Per General Ledger      10,145.50 Add: Add: Deposit of June 30, not recorded by bank            1,117.74 Errors in Recording Chq No 743 - ($761.30 - $671.30)                   90.00 Amount Directly Collected by Bank             3,710.00         3,800.00          14,742.45      13,945.50 Less: Less: Outstanding Checks: Bank Service Charges                  (75.00) Chq No 738                (251.40) Error in recording check Deposit on June-10 ($896.61 - $996.61)              (100.00) Chq No 756                (113.95) Error in recording check Deposit on June-24 ($942.71-$947.21)                   (4.50) Chq No 758                (259.60) NSF Check              (550.00)          (729.50) Chq No 759                (901.50)          (1,526.45) Bank Balance after Reconcilation          13,216.00 Company Balance per Reconcilation      13,216.00 Answer 2. CHAVEZ COMPANY Journal Entry Date Particulars Dr. Amt.   Cr. Amt. 30-Jun Cash                                                                     3,710.00    Accounts Receivable    3,710.00 (To record amount directly collected by bank) 30-Jun Accounts Receivable                                         550.00    Cash       550.00 (To Charge account for NSF check plus fee) 30-Jun Cash            90.00     Accounts Payable          90.00 (To correct an error in recording chq no 743) 30-Jun Accounts Receivable          104.50    Cash       104.50 (Record the error in chq deposits) No entry is Recorded for 1 Deposit in Transit 2 Outstanding Checks 3 Bank errors Answer 3. Cash Shown in Balance Sheet - June 30    13,216.00 Answer 4. Error of $500 ($390 - $890) will be added in the Bank Side of reconcilition Statement and no entry is to passsed for the same. The Application to be given to the Bank for rectification of error.