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$(Bank$ Reconciliation and Adjusting Entries$)$

The cash account $of$ Aguilar $Co.$ showed a ledger balance $of$ $$3,381\mathrm{.}55on$ June $30,2024.$ The bank

statement $asof$ that date showed a balance $of$ $$5,720\mathrm{.}70.$ Upon comparing the statement with the

cash records, the following facts were determined.

There were bank service charges for June $of$ $$35\mathrm{.}50.$

A bank memo stated that Bao Dai's note for $$1,350$ and interest revenue $of$ $$105$ had

been collected $on$ June $29,$ and the bank had made a charge $of$ $$25\mathrm{.}00as$ fees for the

collection. $(No$ entry had been made $on$ Aguilar's books when Bao Dai's note was sent $to$

the bank for collection.$)$

Cash receipts for June $30$ for $$879\mathrm{.}50$ were not deposited until July $2.$

Checks outstanding $on$ June $30$ totaled $$1,876\mathrm{.}45.$

The bank had charged the Aguilar $Co.\text{'}s$ account for a customer's uncollectible $(NSF)$

check amounting $to$ $$156\mathrm{.}80on$ June $29.$

A customer's check for $$385$ had been deposited correctly $at$ the bank but entered $as$

$$285in$ the cash receipts journal $by$ Aguilar $on$ June $15.$

Check $no.742$ correctly written $in$ the amount $of$ $$650\mathrm{.}00$ had been entered $in$ the cash

journal $as$ $$560\mathrm{.}00,$ and check $no.747$ correctly written $in$ the amount $of$ $$780\mathrm{.}50$ had

been entered $as$ $$875\mathrm{.}00.$ Both checks had been issued $to$ pay for purchases $of$

equipment which was entered into the ledger correctly $on$ initial transaction. $(HINT-$ Treat

$as$ two separate items $on$ the reconciliation$)$

Instructions

$(a)$ Prepare a bank reconciliation dated June $30,2024,$ proceeding $to$ a correct cash balance.

$(b)$

Prepare any entries necessary $to$ make the general ledger correct and complete.

$*Assume$ sales related $to$ deposit errors were $on$ account. HINT: Your adjustment $isan$ Accounts Receivable issue

${?}^{**}$ Assume the check errors related $to$ Equipment purchase was $on$ account, meaning the original

entry $to$ Equipment and Accounts Payable was correct. HINT: Your adjustment $isan$ Accounts

Payable issue.

Answer & Explanation Solved by verified expert

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