Burke Company Has Just Received Its June 30 Bank Statement

question 55

Not Answered

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.

---

Definitions:

Income

Money received on a regular basis from work, property, business, or investments.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified period.

Alcohol

A chemical compound that is a widely used depressant in beverages; can be intoxicating if consumed in sufficient quantities.

Levy

An imposed tax, charge, or fine on an individual or a company by a government or authoritative body.