The Following Information Is Available to Reconcile Hinckley Company's Book

question 116

Essay

The following information is available to reconcile Hinckley Company's book balance of cash with its bank statement cash balance as of June 30.The June 30 cash balance according to the accounting records is $57,542,and the bank statement cash balance for that date is $67,047.
a.The bank erroneously cleared a $295 check against the account in June that was not issued by Hinckley.The check documentation included with the bank statement indicates the check was actually issued by Dancer Co.
b.$35 interest earned on Hinckley's cash balance in the bank is not yet recorded by Hinckley.
c.When the June checks are compared with entries in the accounting records,it is found that Check No.1727 had been correctly drawn for $1,450 to pay for advertising but was erroneously entered in the accounting records as $1,540.
d.The bank collected $8,970 cash on a note receivable for Hinckley.Hinckley did not record this transaction before receiving the statement.
e.An $865 NSF check received from a customer is shown on the bank statement,but not yet recorded by Hinckley Company.
f.Hinckley's June 30 daily cash receipts of $6,425 were placed in the bank's night depository on that date,but do not appear on the June 30 bank statement.
g.Hinckley's June 30 cash payments journal indicates that Check No.1737 for $4,830 and Check No.1740 for $3,280 were both written and entered in the accounting records,but are not among the canceled checks.
h.The bank lock box fee for $115.00 is shown on the bank statement,but not yet recorded by Hinckley Company.
1.Prepare the bank reconciliation for this company as of June 30.
2.Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of June 30.

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Definitions:

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