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, 20Y2, 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

The 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 the bank statement		$9,447.20
2	Adjustments:
3	Deposit for May 31 not recorded by the bank	$690.25
4	Outstanding Check No. 731	(162.15)
5	Outstanding Check No. 736	(345.95)
6	Outstanding Check No. 738	(251.40)
7	Outstanding Check No. 739	(60.55)
8	Total adjustments		(129.80)
9	Adjusted balance		$9,317.40
10
11	Cash balance according to the company’s records		$9,352.50
12	Adjustments:
13	Bank service charges		(35.10)
14	Adjusted balance		$9,317.40

Refer to the

June Bank Statement

.

	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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round your answers to two decimal places. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2.	Journalize the necessary entries. Refer to the Chart of Accounts for the exact wording of account titles. 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, 20Y2?
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 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary	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

Amount Descriptions

Amount Descriptions
Adjusted balance
The check returned because of insufficient funds
Deposit of June 30, not recorded by the bank
Error in recording Check No. 743
Error in recording June 10 deposit
Error in recording June 24 deposit
Interest
Principal
Proceeds of note collected by the bank: Principal
Proceeds of note collected by the bank: Interest
Service charges
Total adjustments
Outstanding Check No. 738
Outstanding Check No. 756
Outstanding Check No. 758
Outstanding Check No. 759

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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round your answers to two decimal places. (Note: For those boxes in which you must enter subtracted or negative numbers use a minus sign. )

Beeler Furniture Company

Bank Reconciliation

June 30, 20Y2

1	Cash balance according to a bank statement
2	Adjustments:
3
4
5
6
7
8
9
10
11	Cash balance according to the company’s records
12	Adjustments:
13
14
15
16
17
18
19
20
21

Journal

2. Journalize the necessary entries. Refer to the Chart of Accounts for the exact wording of account titles. Round your answers to two decimal places.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8

Answer 1

Beeler Furniture Company
Bank Reconciliation
June 30 20Y2
Cash Balance according to bank Statement		13624.71
Add: Deposit for June 30, not recorded by bank		1222.24	See Note 1
		14846.95
Deduct Outstanding Checks
No. 738	251.4
No. 756	113.95
No. 758	259.6
No. 759	901.5	1526.45
Adjusted Balance		13320.5
Cash Balance according to company's record		10145.5
ADD: Note Collected	3500
ADD: Other Collection	210
Add: Error in Check No. 743	90	3800
Deduct NSF Check	550
Deduct Service charges	75	625
Adjusted balance		13320.5	0
Note 1:
Cash receipt as per co. record	9223.76
Less: Cash Deposit in bank statement
	1080.5
	854.17
	840.5
	896.61
	882.95
	1606.74
	897.34
	942.71
Total deposit as per bank statement	8001.52
Deposit in transit	1222.24
	1132.24