Chicago Company Has Hired You to Reconcile Its Bank Statement

question 78

Not Answered

Chicago Company has hired you to reconcile its bank statement and cash account.For June,the Cash account showed the following:
$$\begin{array} { l l r r r } & & { \text { Cash account } } & \\\text { Date } & \text { Explanation } & \text { Debits } & \text { Credits } & \text { Balance } \\\text { June 1 } & \text { Balance } & & & 5,600 \\\text { June 1-30 } & \text { Deposits } & \$ 32,000 & & 37,600 \\\text { June 1-30 } & \text { Checks } & & \$ 29,700 & 7,900 \\\text { June 30 } & \text { Balance } & & & 7,900\end{array}$$ The June bank statement,just received,showed the following: $$\begin{array} { l r } \text { June 1, balance } & \$ 5,600 \\\text { June deposits } & 29,000 \\\text { June-Interest paid by bank } & 120 \\\text { June checks } & ( 27,500 ) \\\text { Bank service charge } & ( 50 ) \\\text { NSF Charged (Brad Jolie, check returned for } & \\\text { nonsufficient funds) } &\underline{( ( 150 ) )}\\\text { June } 30 \text {, balance } & \underline{(\$ 7,020)} \\\end{array}$$ There were neither outstanding checks nor deposits in transit at May 31.
A.Prepare the bank reconciliation.
B.Prepare the adjusting journal entries needed due to the bank reconciliation.
C.What is the June 30 ending cash balance?

---

Definitions:

Debentures

A type of debt instrument that is not secured by physical assets or collateral but backed solely by the general creditworthiness and reputation of the issuer.

Indentures

Formal legal agreements, contracts, or documents, especially those that bind someone to work for another for a specified time, often used in the context of bonds or loans.

Corporate Stock Regulation

Rules and guidelines set by authorities governing the issuance, transfer, and trading of shares of a corporation.

Federal Government

The national government of a federal country that is responsible for areas of governance assigned to it by the constitution, distinct from state or provincial governments.