Question

Bentley Company’s June 30 bank statement and June ledger account for cash are summarized below: BANK...

Bentley Company’s June 30 bank statement and June ledger account for cash are summarized below:

BANK STATEMENT
Checks Deposits Balance
Balance, June 1 $ 6,500
Deposits during June $ 16,200 22,700
Checks cleared during June $ 16,600 6,100
Bank service charges 40 6,060
Balance, June 30 6,060
Cash (A)
June 1 Balance 6,500   June Checks written 19,000
June Deposits 18,100

Required:

1. Reconcile the bank account. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $2,400. A deposit of $1,900 is in transit at the end of June.

2. Prepare the journal entry that should be made as a result of the bank reconciliation.

3. What is the balance in the Cash account after the reconciliation entries?

4. What is the total amount of cash that should be reported on the balance sheet at June 30?

Reconcile the bank account. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $2,400. A deposit of $1,900 is in transit at the end of June.

BENTLEY COMPANY
Bank Reconciliation, June 30
Company's Books Bank Statement
Ending balance per cash account $5,600 Ending balance per bank statement $6,060
Additions: Additions:
Deposit in transit 1,900
1,900
5,600 7,960
Deductions: Deductions:
Bank service charge 40 Outstanding checks 2,400
40 2,400
Correct cash balance 5,560 Correct cash balance 5,560

Record any journal entries that should be made as a result of the bank reconciliation.

Note: Enter debits before credits.
Date General Journal Debit Credit
June 30

What is the balance in the Cash account after the reconciliation entries?

Cash Balance:

What is the total amount of cash that should be reported on the balance sheet at June 30?

Total Amount of Cash:

Business   Accounting   
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Homework Answers

Answer #1
1
Bank Reconciliation, June 30
Company's Books Bank statement
Ending balance per cash account 5600 Ending balance per bank statement 6060
Additions: Additions:
Deposit in Transit 1900
0 1900
5600 7960
Deductions: Deductions:
Bank service charge 40 Outstanding checks 2400
40 2400
Correct Cash balance 5560 Correct Cash balance 5560
2
General Journal Debit Credit
June 30 Bank service charge expense 40
        Cash 40
3
Cash balance 5560
4
Total amount of Cash 5560
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