bank reconciliation
Brighton Early's Worm Farm received a bank statement for the month ending June 30, 2015, which showed an ending balance of $9,660. The company's Cash account in the general ledger showed a balance of $8,011 as of June 30, 2015.
Other information that may be relevant in preparing a bank reconciliation as of June 30, 2015, is as follows:
Checks which were written in June 2015 but still had not been presented to the bank for payment at June 30, 2015, amounted to $1,225. There were no other checks from prior months which had not been presented to the bank for payment.
A check written by Brighton Early's Worm Farm and correctly paid by the bank for $1,470 was incorrectly recorded in the cash payments journal as $1,381. The check was a payment on an account to a vendor.
Brighton Early's Worm Farm recorded cash receipts of $1,246 on June 30, 2015, but this amount does not yet appear on the bank statement.
The bank included a credit to the company's bank account for $3,152, which represents a collection of a customer's note receivable by the bank on behalf of Brighton Early's Worm Farm. The principal amount of the note was $3,000, while the remainder was interest.
The bank charged the company's bank account $25 for service charges for the month of June.
The bank returned an NSF check from a customer of Brighton Early's Worm Farm for $635. The check had been received from a customer for its payment of its outstanding account.
The bank cleared a check for $733 against Brighton Early's Worm Farm's bank account that actually should have been cleared against another bank customer's account (i.e., it was not a check written by Brighton Early's Worm Farm.)
QUESTIONS:
Prepare a properly-formatted bank reconciliation for Brighton Early's Worm Farm as of June 30, 2015. Since you are not able to present the bank reconciliation side-by-side, you may list the Bank side first, followed by the Book side. (6 points)
What journal entries are necessary to correct the books for Brighton Early's Worm Farm as of June 30, 2015? (2 points)
Price $ 1.00