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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 $ 7,450 Deposits during June $ 15,800 23,250 Checks cleared during June $ 16,550 6,700 Bank service charges 22 6,678 Balance, June 30 6,678 Cash (A) June 1 Balance 7,450 June Checks written 19,100 June Deposits 18,450 Required: 1. Reconcile the bank account. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $2,550. A deposit of $2,650 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?

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Expert Solution

Bentley Company
Bank Reconciliation
At June 30
Bank Statement Balance         6,678 Book Balance         6,800
Add: Add:
Deposit in Transit         2,650
Deduct: Deduct:
Outstanding Checks         2,550 SERVICE CHARGE               22
Adjusted Bank Balance         6,778 Adjusted Book Balance         6,778
Journal Entries
General Journal Debit Credit
1) No Entry Required
2) No Entry Required
3) Bank Service Charges               22
     Cash               22
(To record bank charges)
Req 3 balance in the Cash account after the reconciliation entries         6,778
Req-4 total amount of cash that should be reported on the balance sheet         6,778

ekkarill92 answered 2 years ago
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