Reference no: EM133492612

Problem. Bank Reconciliation with Adjusting Entries (1.1 content area)

The cash account of UMPI Co. showed a ledger balance of $4,826.42 on June 30, 2019. The bank statement as of that date showed a balance of $5006.57. Upon comparing the statement with the cash records, the following facts were determined.

1. There was a bank service charge for June of $25.

2. A bank memo stated that Jane Day's note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.50 on the collection. (No entry had been made on UMPI's books when Jane Day's note was sent to the bank for collection.)

3. Receipts for June 30 for $3,390 had not deposited until July 2.

4. Checks outstanding on June 30 totaled $2,136.05.

5. The bank had charged the UMPI Co.'s account for a customer's uncollectible check amounting to $253.20 on June 29.

6. A customer's check for $90 (as payment on the customer's Accounts Receivable) had been entered as $60 in the cash receipts journal by UMPI on June 15.

7. Check no. 742, for the amount of $491, had been entered in the cash journal as $419, and check no. 747 in the amount of $58.20 had been entered as $582. Both checks had been issued to pay for purchases and were payments on UMPI's Accounts Payable.

Instructions:

Question 1 put together a bank reconciliation, in good form, dated June 30, 2019, proceeding to a correct cash balance per books.

Question 2 explain any journal entries necessary to make the books reconciled to bank balance. Use reasonable assumptions if any information is missing.