Burke Company Has Just Received Its June 30 Bank Statement

question 55

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Burke Company has just received its June 30 bank statement from Urban Bank.The bank statement and the cash account,summarized below,are to be reconciled for the month of June. $\begin{array}{lrlr}\text { Bank Statement } & & \text { Cash Account } \\\text { Balance, June } 1 & \$ 5,200 & \text { Balance, June } 1 & \$ 5,500 \\\text { Deposits } & 9,200 & \text { Cash receipts } & 9,000 \\\text { Interest paid by bank } & 240 & \text { Checks written } & (7,700) \\\text { Checks cashed } & (7,475) & & \\\text { Bank service charge } & (20) & & \\\text { NSF check (Jimmy Dean) } & (100) & & \\\text { Balance, June } 30 & \$ 11,045 & \text { Balance, June } 30 & \$ 10,800 \\& & & \\\text { Other Data: } & & & \\& \text { May } & \text { June } & \\\text { Deposit in transit at month end } & \$ 600 & \$ 400 & \\\text {Outstanding checks at month end } & 300 & 525 & \\\end{array}$ Required:
A.Prepare the June 30 bank reconciliation.
B.Prepare the journal entries that should be made in the accounts of Burke Company as a result of the bank reconciliation.

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Definitions:

Favorable Variance

A financial situation where actual costs are less than the standard or budgeted costs, or actual revenue is higher than expected.

Quality Control Standards

Guidelines and criteria set to ensure the products meet certain thresholds of quality and reliability before they are delivered to customers.

Flexible Standards

Performance benchmarks that can adjust based on changes in actual conditions, allowing for more accurate budgeting and control.

Materials Price Variance

A measure of the difference between the actual cost of materials and the expected cost at standard prices.