The Bank Statement for Cates Company Indicates a Balance of $1,730

question 108

Essay

The bank statement for Cates Company indicates a balance of $1,730 on June 30. The cash balance per books had a balance of $799 on this date. The following information pertains to the bank transactions for the company.
1. Deposit of $760, representing cash receipts of June 30, did not appear on the bank statement.
2. Outstanding checks totaled $340.
3. Bank service charges for June amounted to $25
4. The bank collected a note receivable for the company for $1,400 plus $56 interest revenue.
5. An NSF check for $80 from a customer was returned with the statement.
Instructions
a. Prepare a bank reconciliation for June 30.
b. Prepare any adjusting entries necessary as a result of the bank reconciliation.

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Definitions:

Medium

A means or channel through which something is communicated or expressed.

Analyzing

The process of examining something methodically and in detail so as to understand its nature or to determine its essential features.

Anticipating

The act of expecting or predicting future events or needs based on current trends or data.

Background Information

Preliminary data or knowledge that provides context for a new study, discussion, or analysis.