Prepare the journal entry to update the cash account

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Reference no: EM132966540

-The June 30 bank statement shows a checking account balance of $16,311.00. Our book balance on June 30 was $14,515.52. Our employee who reconciles the bank statement noted the following reconciling items:a. After the bank closed on June 30, we deposited the day's cash sales, $1,588.14.

b. The bank collected a Note Receivable on our behalf on June 30. We had not been notified of the collection before receiving the bank statement. The amount is $950.

c. Check #5259 in the amount of $1,352.71 was properly prepared for the purchase of Merchandise Inventory. The bank processed it correctly. Unfortunately, we did not record the check in our Cash Disbursements Journal.

d. Outstanding checks on March 31 totaled $3,811.33.

e. The bank deducted a service charge of $25, which we have not yet recorded.

Required:

a. Use the "P 3" tab in the spreadsheet to prepare a bank reconciliation for June 30.

b. Prepare the journal entry to update the Cash account based on the reconciliation.

Reference no: EM132966540

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