Question

The cash account of Pearl Co. showed a ledger balance of $16,442.97 on June 30, 2020....

The cash account of Pearl Co. showed a ledger balance of $16,442.97 on June 30, 2020. The bank statement as of that date showed a balance of $17,430. Upon comparing the statement with the cash records, the following facts were determined.

1. There were bank service charges for June of $105.

2. A bank memo stated that Bao Dai’s note for $5,040 and interest of $151.20 had been collected on June 29, and the bank had made a charge of $23.10 on the collection. (No entry had been made on Pearl’s books when Bao Dai’s note was sent to the bank for collection.)

3. Receipts for June 30 for $14,238 were not deposited until July 2.

4. Checks outstanding on June 30 totaled $8,971.41.

5. The bank had charged the Pearl Co.’s account for a customer’s uncollectible check amounting to $1,063.44 on June 29.

6. A customer’s check for $378 (as payment on the customer’s Accounts Receivable) had been entered as $252 in the cash receipts journal by Pearl on June 15.

7. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $244.44 had been entered as $2,444.40. Both checks had been issued to pay for purchases and were payments on Pearl’s Accounts Payable.

Prepare a bank reconciliation dated June 30, 2020, proceeding to a correct cash balance. (Enter answers to 2 decimal places, e.g. 125.62.)

Prepare entries necessary to make the books correct and complete. Use Office Expense account for bank service charges. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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