Reference no: EM132515502
Question - On June 30, 2021, EZ Fertilizer's cash account per its general ledger showed the following balance:
CASH No. 101
Date Explanation Ref Debit Credit Balance
June 30 Balance 6,925
The bank statement from Canada Bank on that date showed the following balance: CANADA BANK Cheques and Debits Deposits and Credits Daily Balance XXX XXX 6/30 6,776
A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.
The bank statement included a debit memo of $40 for printing of additional company cheques.
Cash sales of $624 on June 21 were deposited in the bank. The bookkeeper recorded the deposit in the cash journal as $642.
Outstanding cheques on June 30 totalled $946 and deposits in transit were $1,587.
On June 18, the company issued cheque #1924 for $356 to D. Katz on account.
The cheque, which cleared the bank in June, was incorrectly journalized and posted by EZ Fertilizer for $536.
A $1,550 note receivable was wired to the bank account of EZ Fertilizer on June 30 plus $45 interest.
The bank charged a $25 collection fee. No interest has been accrued on the note.
Included with the cancelled cheques was a cheque issued by EZ Company for $234 that was incorrectly charged to EZ Fertilizer by the bank.
On June 30, the bank statement showed an NSF charge of $966 for a cheque issued by Amanda Vallee, a customer, to EZ Fertilizer on account. Instructions
a. Prepare the bank reconciliation at June 30.
b. Prepare the necessary adjusting entries at June 30.