As of June 30, 2016, the bank statement showed an ending balance of $19,500. The unadjusted Cash account balance was $15,200. The following information is available:
1. Deposit in transit, $2,400.
2. Credit memo in bank statement for interest earned in June, $30.
3. Outstanding check, $6,690.
4. Debit memo for service charge, $20.
a. Determine the true cash balance by preparing a bank reconciliation as of June 30, 2016, using the preceding information.
b. Record in general journal foamy the adjusting entries necessary to correct the unadjusted book balance.
|Bank Reconciliation statement|
|Balance per bank statement, June 30||$19,500|
|Add: Deposit in transit||2400|
|Less: Outstanding checks||6690|
|Adjusted balance, June 30||$15,210|
|Balance per bookks, June 30||$15,200|
|Adjusted balance as per books, June 30||$15,210|
|Hence true cash balance is $15210|
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Question & Answer: As of June 30, 2016, the bank statement showed an ending balance of $19,500. The unadjuste…..
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