Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance.On June 30, the balance in Wilson Builder's checkbook and Cash account was $12,837.18. The balance on the bank statement on the same date was $15,084.06.
(a) The following checks were issued but have not yet been paid by the bank: Check 335 for $297.90; check 337 for $195; and check 339 for $850.80.
(b) A credit memorandum shows that the bank has collected a $3,000 note receivable and interest of $60 for the firm. These amounts have not yet been entered in the firm's records.
(c) The firm's records indicate that a deposit of $1,888.14 made on June 30 does not appear on the bank statement.
(d) A service charge of $28.68 and a debit memorandum of $240 covering an NSF check have not yet been entered in the firm's records.
Instructions:
(a) Prepare a bank reconciliation statement for the firm as of June 30.
(b) Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries July 3.
(c) Analyze: After all the journal entries have been recorded and posted, what is the balance in the cash account?