The cash account of Cullumber Co. showed a ledger balance of $22,679.53 on June 30, 2017. The bank statement as of that date showed a balance of $24,070.00. Upon comparing the statement with the cash records, the following facts were determined.
1. There were bank service charges for June of $145.00.
2. A bank memo stated that Bao Dai’s note for $6,960.00 and interest of $208.80 had been collected on June 29, and the bank had made a charge of $31.90 on the collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the bank for collection.)
3. Receipts for June 30 for $19,662.00 were not deposited until July 2.
4. Checks outstanding on June 30 totaled $12,398.09.
5. The bank had charged the Cullumber Co.’s account for a customer’s uncollectible check amounting to $1,468.56 on June 29.
6. A customer’s check for $522.00 (as payment on the customer’s Accounts Receivable) had been entered as $348.00 in the cash receipts journal by Cullumber on June 15.
7. Check no. 742 in the amount of $491.00 had been entered in the cash journal as $419.00, and check no. 747 in the amount of $337.56 had been entered as $3,375.60. Both checks had been issued to pay for purchases and were payments on Cullumber’s Accounts Payable.
A) Prepare a bank reconciliation dated June 30, 2017, proceeding to a correct cash balance.
B) Prepare any entries necessary to make the books correct and complete. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)