Question

Problem 7-13 (Part Level Submission)

The cash account of Bonita Co. showed a ledger balance of $10,985.98 on June 30, 2017. The bank statement as of that date showed a balance of $11,620.00. Upon comparing the statement with the cash records, the following facts were determined.

1.		There were bank service charges for June of $70.00.
2.		A bank memo stated that Bao Dai’s note for $3,360.00 and interest of $100.80 had been collected on June 29, and the bank had made a charge of $15.40 on the collection. (No entry had been made on Bonita’s books when Bao Dai’s note was sent to the bank for collection.)
3.		Receipts for June 30 for $9,492.00 were not deposited until July 2.
4.		Checks outstanding on June 30 totaled $5,980.94.
5.		The bank had charged the Bonita Co.’s account for a customer’s uncollectible check amounting to $708.96 on June 29.
6.		A customer’s check for $252.00 (as payment on the customer’s Accounts Receivable) had been entered as $168.00 in the cash receipts journal by Bonita on June 15.
7.		Check no. 742 in the amount of $491.00 had been entered in the cash journal as $419.00, and check no. 747 in the amount of $162.96 had been entered as $1,629.60. Both checks had been issued to pay for purchase of equipment and were payments on Bonita’s Accounts Payable.

(b)

Prepare entries necessary to make the books correct and complete. Use Office Expense account for bank service charges. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1