Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June indicated a balance of...

90.2K

Verified Solution

Question

Accounting

Bank Reconciliation The Chicago ScooterCompany's bank statement for the month of June indicated a balanceof $10,500. The company's cash account in the general ledger showeda balance of $8,670 on June 30. Other relevant information includesthe following:
Deposits in transit on June 30 total $7,800.
The bank statement shows a debit memorandum for a checkprinting charge of $60.
Check number 160 payable to Simon Company was recorded in theaccounting records for $372 and cleared the bank for this sameamount. A review of the records indicated that the Simon accountnow has a $54 credit balance and the check to them should have been$426.
Outstanding checks as of June 30 totaled $8,700.
Check No. 176 was correctly written and paid by the bank for$609. The check was recorded in the accounting records as a debitto accounts payable and a credit to cash for $735.
The bank returned a NSF check in the amount of $1,026.
The bank included a credit memorandum for $1,890 representing acollection of a customer's note. The principle portion was $1,800and the interest portion was $90. The interest had not beenaccrued.
Required
a. Prepare the June bank reconciliation for Chicago ScooterCompany.
b. Prepare any necessary adjusting entries.

Answer & Explanation Solved by verified expert

3.7 Ratings (617 Votes)

Solution Chicago Scooter Company a Bank Reconciliation Statement Chicago Scooter Company Bank Reconciliation Statement For the Month Ended June 30 Balance as per bank records 10500 Add deposits in transit 7800 Less See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member