Natalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not have any errors and is accurate and up-to-date is to prepare a bank reconciliation at the end of each month. Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2021 using the following information.
GENERAL LEDGER—COOKIE CREATIONS INC.
Cash
Date
Explanation
Ref
Debit
Credit
Balance
2021
June 1
Balance
2,657
1
750
3,407
3
Check #600
625
2,782
3
Check #601
95
2,687
8
Check #602
56
2,631
9
1,050
3,681
13
Check #603
425
3,256
20
155
3,411
28
Check #604
297
3,114
28
110
3,224
PREMIER BANK
Statement of Account—Cookie Creations Inc.
June 30, 2021
Date Explanation Checks and Other
Debits Deposits Balance
May 31
Balance
3,256
June 1
Deposit
750 4,006
6
Check #600
625 3,381
6
Check #601
95 3,286
8
Check #602
56 3,230
9
Deposit
1,050 4,280
10
NSF check
135 4,145
14
Check #603
452 3,693
20
Deposit
125 3,818
23
EFT–Telus
85 3,733
28
Check #599
361 3,372
30
Bank charges
13 3,359
Additional information:
1. On May 31, there were two outstanding checks: #595 for $238 and #599 for $361.
2. Premier Bank made a posting error to the bank statement: check #603 was issued for $425, not $452.
3. The deposit made on June 20 was for $125 that Natalie received for teaching a class. Natalie made an error in recording this transaction.
4. The electronic funds transfer (EFT) was for Natalie’s cell phone use. Remember that she uses this phone only for business.
5. The NSF check was from Ron Black. Natalie received this check for teaching a class to Ron’s children. Natalie contacted Ron and he assured her that she will receive a check in the mail for the outstanding amount of the invoice.