The Following Information Is Available for Ashley Company for the Month

question 182

Essay

The following information is available for Ashley Company for the month ending June 30, 2019.
• Balance as per the bank statement is $11,240.
• Balance as per books is $10,200.
• Check #506 for $1,200 and check #510 for $900 were not shown on the June 30 bank statement.
• A deposit in transit of $3,110 had not been received by the bank when the bank statement
$$\text { was generated. }$$ • A bank debit memo indicated an NSF check for $85 written by Maddie Wolfe to
$$\text { Ashley Company on June } 13$$ • A bank credit memo indicated a note collected by the bank of $2,100 and interest revenue
$$\text { of } \$ 55 \text { on June } 20$$ • The bank statement indicated service charges of $20.
Prepare bank reconciliation for Ashley Company for June 30, 2019.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to calculate operating cash flow.

Operating Activities

Cash flow actions related to the day-to-day operations of a business, such as receiving cash from customers and paying suppliers.

Direct Method

An allocation method that directly assigns service department costs to producing departments without any intermediate allocations.