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Q2) Following are details for the cash account for the month of June 2019 and the June 30, 2019 bank statement for DEF Company.
Cash account
| Date | Explanation | Debits | Credits | Balance |
| June 1 | Balance | | | $5,600 |
| June 1-30 | Deposits | $32,000 | | 37,600 |
| June 1-30 | Checks | | $29,800 | 7,800 |
| June 30 | Balance | | | 7,800 |
The June bank statement, just received, showed the following:
| June 1, balance | $5,600 |
| Deposits made in June | 29,000 |
| Interest paid by the bank in June | 130 |
| Checks paid in June | (27,500) |
| Bank service charge for June | (50) |
| NSF Charged (Brad Jolie, check returned for nonsufficient funds) | (150) |
| June 30, balance | $7,030 |
There were neither outstanding checks nor deposits in transit at May 31, 2019.
A. Prepare the bank reconciliation at June 30, 2019.
B. Prepare the adjusting journal entries needed as a result of preparing the bank reconciliation.
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