Question & Answer: Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June indicated a…..

Please answer.

Bank Reconciliation The Chicago Scooter Company’s bank statement for the month of June indicated a balance of $3,350. The company’s cash account in the general ledger showed a balance of $2,464 on June 30. Other relevant information includes the following:

Deposits in transit on June 30 total $2,550.

The bank statement shows a debit memorandum for a $10 check printing charge.

Check No. 160 payable to Simon Company was recorded in the accounting records for $124 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has an $18 credit balance and the check to them should have been $142.

Outstanding checks as of June 30 totaled $3,100.

Check No. 176 was correctly written and paid by the bank for $203. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $230.

The bank returned a NSF check in the amount of $311.

The bank included a credit memorandum for $630 representing a collection of a customer’s note. The principle portion was $610 and the interest portion was $20. The interest had not been accrued.

Required
a. Prepare the June bank reconciliation for Chicago Scooter Company.
b. Prepare any necessary adjusting entries.

CHICAGO SCOOTER COMPANY Bank Reconciliation June 30
Cash Balance per Bank			$Answer

Add:	AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge		Answer
Less:	AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge		Answer

AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge			$Answer

Cash Balance per Books			$Answer

Add:	Accounts Payable Error	$Answer
Add:	AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge	Answer	Answer

Less:	AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge	Answer
Less:	NSF Check	Answer	Answer

AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge			$Answer

GENERAL JOURNAL
Date		Description	Debit	Credit
June	30	AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	$Answer	$Answer
		AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		To correct check error in recording check No. 176.
	30	AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		Interest Earned	Answer	Answer
		To record note collection by bank.
	30	AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		To record check printing charge.
	30	AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		To record NSF check.

Expert Answer

a. Bank Reconcilaition is as prepared below:

Chicago Scooter Company
Bank Reconciliation
Jun-30
Particulars	Amount ($)	Amount ($)
Cash balance per bank statement		3,350
Add: Deposit in transit	2,550
Less: outstanding checks:	-3,100	-550
Adjusted cash balance per bank		2,800
Cash balance as per books		2,464
Add: Collection of Note	630
Account Payable Error	27
Less:
NSF Check	-311
Check Printing charge	-10
Adjusted cash balance as per books		2,800

Journal entries

Date	Particulars	L.F	Amount ($)	Amount ($)
20XX
Jun-30	Cash		27
	Account payable			27
	To correct check error in recording check No. 176.

Jun-05	Cash		630
	Note Receivable			610
	Interest earned			20
	To record note collection by bank.

Jun-30	Miscellaneous Expenses		10
	Cash			10
	To record check printing charge.

Jun-28	Account Receivable		311
	Cash			311
	To record NSF check.

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