14) The following information is available for the Savvy Company for the month o

Question

14) The following information is available for the Savvy Company for the month of June. a. On June 30, aft balance of $17.202 er all transactions have been recorded, the balance in the company's Cash account has a b. The company's bank statement shows a balance on June 30 of $19,279. c. Outstanding checks at June 30 total $2,984. d. A credit memo included with the bank statement indicates that the bank collected $770 on a noninterest- bearing note receivable for Savvy e. A debit memo included with the bank statement shows a $67 NSF check from a customer, J. Maroon. f. A deposit placed in the bank's night depository on June 30 totaling $1.675 did not appear on the bank statement. g. Comparing the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the paymentofan account payable was correctly writte accounting records as $2,540. n for $2,450, but was recorded in the h. Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books. REQUIRED: 1. Prepare the June bank reconciliation for the Savvy Company. 2. Prepare the general joumal entries to bring the company's book balance of cash into conformity with the reconciled balance as of June 30, 2017.

Explanation / Answer

1Bank Reconcilation for June for Savvy Company Savvy Company Bank Reconcilation for June Amount in $ Cash Balance per bank 19279 Add: Deposit in transit 1675 20954 Less: outstanding Checks 2984 Adjusted cash balance as per books 17970 Cash balance as Per Books 17202 Add: Accounts payable error 90 Add: collection 770 18062 less: Bank charges 25 Less: NSF check 67 Adjusted cash balance as per books 17970 2 Journal Entries Amount in $ Amount in $ date Account titles Debit Credit Jun-30 cash A/c 770         To Note receivables 770 (being Amount received by bank Directly) Jun-30 Cash A/c 90       To Accounts payables A/c 90 (being Clerical Error haasbeen rectified) Jun-30 Accounts receivables 67           To Cash A/c 67 (Being NSF checks has been recorded) Jun-30 Miscellaneous Expense A/c 25           To cash 25

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