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In: Accounting

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?

Record any journal entries that should be made as a result of the bank reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the entry for deposits during June.

Date General Journal Debit Credit
June 30

Record the entry for checks cleared during June.

Date General Journal Debit Credit
June 30

Record service charges deducted from bank account.

Date General Journal Debit Credit
June 30

Solutions

Expert Solution

Bentley Company
Bank Reconciliation
At June 30
Bank Statement Balance         6,060 Book Balance         5,600
Add: Add:
Deposit in Transit         1,900
Deduct: Deduct:
Outstanding Checks         2,400 SERVICE CHARGE               40
Adjusted Bank Balance         5,560 Adjusted Book Balance         5,560
Journal Entries
General Journal Debit Credit
1) No Entry Required
2) No Entry Required
3) Bank Service Charges               40
     Cash               40
(To record bank charges)
Req 3 balance in the Cash account after the reconciliation entries         5,560
Req-4 total amount of cash that should be reported on the balance sheet         5,560

ekkarill92 answered 1 year ago
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