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 $1,080.5 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 76 486.39
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 bank statement $9,447.20
2 Adjustments:
3 Deposit for May 31 not recorded by 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 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 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.