Continuing Cookie Chronicle 7 Part 2 (Part Level Submission) GENERAL LEDGER—COOK
ID: 2477924 • Letter: C
Question
Continuing Cookie Chronicle 7 Part 2 (Part Level Submission)
GENERAL LEDGER—COOKIE CREATIONS INC.
Cash
Date
Explanation
Ref
Debit
Credit
Balance
2015
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
(a)
Continuing Cookie Chronicle 7 Part 2 (Part Level Submission)
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 2015 using the following information.
GENERAL LEDGER—COOKIE CREATIONS INC.
Cash
Date
Explanation
Ref
Debit
Credit
Balance
2015
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 BANKStatement of Account—Cookie Creations Inc.
June 30, 2015 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 100 4,180 10 NSF–fee 35 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 $125 that Natalie received for teaching a class. Natalie made an error in recording this transaction. 4. The electronic funds transfer (EFT) was for Natalie’s cell phone use. Remember that she uses this phone only for business. 5. The NSF check was from Ron Black. Natalie received this check for teaching a class to Ron’s children. Natalie contacted Ron and he assured her that she will receive a check in the mail for the outstanding amount of the invoice and the NSF bank charge.
Explanation / Answer
Bank Reconliation Statement as on June30, 2015. Particlurs Amount($) Amount ($) A Balance as per Cash Book 3224 B Add: Checks issue but not presented : Check -238 238 Check - 604 297 535 C Posting error by bank - Check No 603 27 Excess posting of check amount 30 EFT for Cell phone on June 23. 85 Bank charges (June 30) 13 NSF Check 100 NSF Fee 35 Expenses yet to be debited by bank 110 400 D Balance as pe Bank Statement 3359
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