Question

In: Accounting

The bank statement and cash activity for the month of June for Greyhound Corporation are provided...

The bank statement and cash activity for the month of June for Greyhound Corporation are provided below:

Capital Bank Statement

Balance at 5/31/17: $46,074.00

Withdrawals

Deposits

Date

Check Number

Amount

Date

Amount

2-Jun

4015

$     642.70

1-Jun

$ 8,470.00

5-Jun

4017

     1,523.50

6-Jun

     1,568.00

7-Jun

4007

         158.40

10-Jun

         154.25

9-Jun

EFT

     4,762.30

11-Jun

         845.15

10-Jun

4024

         763.10

15-Jun

         457.60

15-Jun

4025

         417.50

17-Jun

         251.65

17-Jun

NSF

         315.60

22-Jun

INT

           35.00

20-Jun

4023

     1,006.10

23-Jun

         375.80

26-Jun

4028

         765.90

27-Jun

         784.50

30-Jun

SC

           15.00

   

30-Jun

4034

     1,568.50

   

INT = Interest

Greyhound Company General Ledger

Cash Payments

Cash Receipts

Date

Check Number

Amount

Date

Amount

7-Jun

4024

$     763.10

3-Jun

$ 1,568.00

9-Jun

EFT

     4,762.30

7-Jun

         154.25

12-Jun

4025

         417.50

8-Jun

         845.15

16-Jun

4023

     1,006.10

8-Jun

         475.60

18-Jun

4027

         678.25

14-Jun

         251.65

19-Jun

4028

         765.90

15-Jun

         315.60

24-Jun

4030

         695.15

20-Jun

         375.80

24-Jun

4031

         231.50

25-Jun

         784.50

26-Jun

4034

     1,568.50

27-Jun

     1,008.30

   

27-Jun

         123.45

30-Jun

         358.45

   

Your analysis of the bank statement and company records revealed the following additional information:

Beginning cash balance for Greyhound Company on May 31st was $50,958.15.

Outstanding checks at 5/31/17 according to Greyhound Company were:

Check Number

Amount

      4001

$      647.30

      4005

$      298.35

      4007

$      158.40

      4015

$      642.70

           4017         $   1,523.50

A monthly EFT deduction of $4,762.30 was made for payroll.

Required:

1. Determine the June 30th ending cash balance per the books.

2. Determine the June 30th ending cash balance per the bank.

3. Prepare the reconciliations from both the Company Books and Bank Statement to the correct cash balance at June 30tht. Assume any errors were made by Greyhound.

4. Prepare the adjusting journal entries necessary at June 30th, 2017.

Solutions

Expert Solution

Greyhound Corporation
Bank Reconciliation Statement
Particulars Amount Total Amount Amount
Balance as per Books of Greyhound Corporation 71431.45 Cash balance as on 31-May 50958.15 Bank Balance as on 31-May 46074.00
Date ADD: Date Receipts Date Receipts
2-Jan 4015 642.70 3-Jan 1568.00 1-Jan 8470.00
5-Jan 4017 1523.50 7-Jan 154.25 6-Jan 1568.00
18-Jan 4027 678.25 8-Jan 845.15 10-Jan 154.25
10-Jan 4024 763.10 8-Jan 475.60 11-Jan 845.15
17-Jan NSF 315.60 14-Jan 251.65 15-Jan 457.60
24-Jan 4030 695.15 15-Jan 315.60 17-Jan 251.65
24-Jan 4031 231.50 20-Jan 375.80 22-Jan 35.00
30-Jan SC 15.00 25-Jan 784.50 23-Jan 375.80
30-Jan 4034 1568.50 27-Jan 1008.30 27-Jan 784.50 12941.95
4001 647.30 27-Jan 123.45
4005 298.35 30-Jan 358.45 6260.75
4007 158.40 Payments Payments
4015 642.70 7-Jan 4024 763.10 2-Jan 4015 642.70
4017 1523.50 9703.55 9-Jan EFT 4762.30 5-Jan 4017 1523.50
LESS: 12-Jan 4025 471.50 7-Jan 4007 158.40
1-Jun Check deposit 8470.00 16-Jan 4023 1006.10 9-Jan EFT 4762.30
20-Jan Cash receipts 375.80 18-Jan 4027 678.25 10-Jan 4024 763.10
27-Jan Cash receipts 1008.30 19-Jan 4028 765.90 15-Jan 4025 417.50
27-Jan Cash receipts 123.45 24-Jan 4030 695.15 17-Jan NSF 315.60
30-Jan Cash receipts 358.45 24-Jan 4031 231.50 20-Jan 4023 1006.10
22-Jan Check deposit 35.00 -10371.00 26-Jan 4034 1568.5 -10942.3 26-Jan 4028 765.90
Bank Balance as on 30-June 70764.00 Closing cash balance 68161.2 30-Jan SC 15.00
Outstanding balance 30-Jan 4034 1568.50 -11938.60
4001 647.30 47077.35
4005 298.35
4007 158.40
4015 642.70
4017 1523.5 -3270.25
Closing cash balance 71431.45

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