BANK RECONCILIATION

Beeler Furniture Company deposits all cash

Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions. To simplify, this chapter assumes that a company has only one bank account, which is identified in the Ledger as “Cash.”

receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement

A summary of all transactions mailed to the depositor or made available online by the bank each month.

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	$9,317.40
CASH RECEIPTS FOR 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
3	854.17		15	882.95		24	947.21
8	840.50		17	1,606.74		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	537.01		759	901.50
746	298.66		753	380.95		760	486.39

Total amount of checks issued in June: $8,395.66

BANK RECONCILIATION FOR PRECEDING MONTH:

Question not attempted.

BEELER FURNITURE COMPANY

Bank Reconciliation

May 31, 2016

1	Cash balance according to bank statement		$9,447.20
2	Add deposit for May 31, not recorded by bank		690.25
3			$10,137.45
4	Deduct outstanding checks:
5	No. 731	$162.15
6	No. 736	345.95
7	No. 738	251.40
8	No. 739	60.55	820.05
9	Adjusted balance		$9,317.40
10
11	Cash balance according to company’s records		$9,352.50
12	Deduct service charges		35.10
13	Adjusted balance		$9,317.40

JUNE BANK STATEMENT:

	Required:
1.	Prepare a bank reconciliation as of June 30. 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. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. To enter the Check number, please enter “No. ” preceeding the number. (Note: “Deduct”, “Add”, or colons (:) will automatically appear if required.)
2.	Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.
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.

PAGE 1 MEMBER FDIC ACCOUNT NUMBER AMERICAN NATIONAL BANK OF CHICAGO FROM 6/01/2016 TO 6/30/2016 CHICAGO, IL 60603 (312) 441-1239 BALANCE 9,447.20 9 DEPOSITS 8,691.77 20 WITHDRAWALS 7,599.26 BEELER FURNITURE COMPANY 4 OTHER DEBITS AND CREDITS 3,088.00CR NEW BALANCE 13,624.71 CHECKS AND OTHER DEBITS DEPOSITS DATE BALANCE- No.731 162.18 No. 738 345.98 690.28 6/01 9,829.38 No.739 60.88 No.740 237.50 1,080.50 6/02 10,411.80 No. 741 49B.18 No.742 801.90 8B4.17 6/04 10,268.92 No. 743 671.30 No.744 BO6.88 840.50 6/09 9,931.24 No. 74B 117.28 No.746 298.66 MS 3,800.00 6/09 13,018.33 No. 748 4B0.90 No.749 640.13 210.00 6/09 12,134.30 299.37 No. 750 276.77 No.7B1 896.61 12,484.77 No. 753 380.95 6/16 No. 752 B37.01 882.98 12,419.76 No. 754 449.78 No.7BB 272.78 1,606.74 6/18 13,304.00 897.34 No. 757 407.98 No. 760 488.39 6/23 13,307.00 942.71 6/2B 14,249.71 NSF B50.00 6/28 13,699.71 13,624.71 SC 7B.00 6/30 EC ERROR CORRECTION OD OVERDRAFT MS MISCELLANEOUS PS PAT STOPPED YMENT NSF NOT SUFFICIENT FUNDS SC SERVICE CHARGE THE RECONCILEMENT OF THIS STATEMENT WITH YOUR RECORDS IS ESSENTIAL. ANY ERROR OR EXCEPTION SHOULD BE REPORTED IMMEDIATELY