Question

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	$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

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	$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:

BEELER FURNITURE COMPANY

Bank Reconciliation

May 31, 20Y2

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

JUNE BANK STATEMENT:

Click here to view.

	Required:
1.	Prepare a bank reconciliation as of June 30, 20Y2. 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. Be sure to complete the statement heading. Refer to the Instructions, 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. “Deduct”, “Add”, or colons (:) will automatically appear if required. Enter all amounts as positive numbers. Round your answers to two decimal places.
2.	Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your answers to two decimal places.
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.

Chart of Accounts

CHART OF ACCOUNTS
Beeler Furniture Company
General Ledger
ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense

Labels and Amount Descriptions

Labels
Cash and cash equivalents
For the Year Ended June 30, 20Y2
June 30, 20Y2
Outstanding checks
Amount Descriptions
Adjusted balance
Bank service charges
Check returned because of insufficient funds
Deposit of June (insert day), not recorded by bank
Error in recording Check No. (insert check number)
Error in recording June (insert day) deposit
Interest
Note and interest collected by bank
Principal
(Check numbers are valid Amount Descriptions;
Please enter “No.” preceeding the Check number.)

Bank Reconciliation

1. Prepare a bank reconciliation as of June 30, 20Y2. 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. Be sure to complete the statement heading. Refer to the Instructions, 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. “Deduct”, “Add”, or colons (:) will automatically appear if required. Enter all amounts as positive numbers. Round your answers to two decimal places.

BEELER FURNITURE COMPANY

Bank Reconciliation

1	Cash balance according to bank statement
2
3

Answer 1

BEELER FURNITURE COMPANY
Bank Reconciliation
6/30/16
Cash balance according to bank statement			$13,624.71
Add deposit of June 30, not recorded by bank			$1,117.74
Deduct outstanding checks No:
738		$251.4
756		$113.95
758		$259.6
759		$901.5	-$1,526.45
Adjusted balance			$13,216
Cash balance according to company’s records (calculated below)			$10,145.5
Add: Proceeds of note collected by bank:
Principal		$3,500
Interest		$210
Error in recording Check No. 743		$90	$3,800
			$13,945.5
Deduct:
Check returned because of Insufficient Fund		$550
Error in recording June 10 deposit (996.61 - 896.61)		$100
Error in recording June 24 deposit (947.21 - 942.71)		$4.5
Service Charges		$75	-$729.5
Adjusted balance			$13,216
Balance per cash account, June 1		$9,317.4
Add June receipts		$9,223.76
Deduct June disbursements (8,305.84)		-$8,395.66
Balance per cash account, June 30 $10,576.87		$10,145.5
2)
DESCRIPTION	POST. REF.	DEBIT	CREDIT
Cash	110	$3,800
Notes Receivable	131		$3,500
Interest Revenue	610		$210
Accounts Payable	210		$90
Sales ($100.00 + $4.50)	410	$104.5
Accounts Receivable	120	$550
Miscellaneous Expenses	590	$75
Cash	110		$729.5
3)
Cash that should appear on the balance sheet as of June 30	$13,216
4)
Treatment
Addition to cash per bank statement
To correct:
Request that the bank correct the error