Discount Muffler Company is preparing its bank reconciliation for June 30, 2019. Its bank statement and general ledger T-account for its checking account are presented below:

Question

 Best Bank
  41 N. Main Street
Account Statement
 Best, GA 32664
June 30, 2019
    Member FDIC
 Discount Muffler Co. Acct. 00709561
161 N. Hill Street  Best, GA 32664     Previous
 Checks
 Deposits
 Current
Balance
 and Debits
 and Credits
 Balance
$9,675.20
 $10,685.26
 $7,175.10
 $6,165.04
       Checks and Debits
Deposits and Credits
Daily Balance
DateNo.
Amount
DateAmount
DateAmount
6/03/191983
182.00
  6/03/199493.20
6/04/191984
217.26
6/04/192673.10
6/04/1911949.04
6/06/191985
1075.00
  6/06/1910874.04
6/07/191986
37.50
6/07/194500.00
6/07/1915336.54
6/10/191987
826.00
  6/10/1914510.54
6/11/191988
50.00
  6/11/1914460.54
6/12/191989
2670.00
    6/12/191990
67.90
  6/12/1911722.64
6/13/191991
890.00
  6/13/1910832.64
6/14/191992
27.50
  6/14/1910805.14
6/17/191993
111.00
  6/17/1910694.14
6/18/19DM
380.00
  6/18/1910314.14
6/19/191994
60.00
    6/19/191995
510.00
  6/19/199744.14
6/20/191996
30.00
  6/20/199714.14
6/21/191997
1600.00
  6/21/198114.14
6/24/191998
78.00
  6/24/198036.14
6/25/19NSF
200.00
  6/25/197836.14
6/26/191999
208.80
  6/26/197627.34
6/27/192000
1250.00
  6/27/196377.34
6/28/192002
175.00
  6/28/196202.34
6/30/192003
25.30
6/30/19INT 2.00
  6/30/19SC
14.00
  6/30/196165.04
       Symbols:DMCMINTNSFSC  DebitCreditInterestNon-Service  Memo-MemoEarnedsufficientCharge  utility bill  funds  ?
Discount Muffler Company
 Cash
 Amount
 Amount
DateDeposited
Check #Disbursed
Beg. Bal.8200.94
  5/31/19 198637.50
6/01/192673.10
1987826.00
6/05/194500.00
198850.00
6/30/19300.00
19892670.00
  199067.90
  1991890.00
  199227.50
  1993111.00
  199460.00
  1995510.00
  199630.00
  19971600.00
  199887.00
  1999208.80
  20001250.00
  200193.00
  2002175.00
  200325.30
  200472.50
  2005891.00
6/30/195991.54
  ?
A)Prepare a bank reconciliation in proper form for June. Note that the beginning balance was correctly reconciled at the end of the previous month, and that all outstanding checks (numbered 1983, 1984, and 1985) and deposits in transit from the previous month cleared the bank during May.  B)How much cash will the company report on its June 30 balance sheet?  C)What adjusting entries will the company record as a result of this bank reconciliation process? Assume that the bank correctly recorded all transactions, and that any errors noted in the reconciliation process involve transactions on credit.

What will be an ideal response?

Answer 1

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