Question - Bank Reconciliation and Entries
The cash account for Online Medical Co. at June 30, 2012, indicated a balance of $12,710. The bank statement indicated a balance of $14,370 on June 30, 2012. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a) Checks outstanding totaled $5,170.
b) A deposit of $5,390, representing receipts of June 30, had been made too late to appear on the bank statement.
c) The bank had collected $2,800 on a note left for collection. The face of the note was $2,660.
d) A check for $770 returned with the statement had been incorrectly recorded by Online Medical Co. as $700. The check was for the payment of an obligation to Hirsch Co. for the purchase on account.
e) A check drawn for $90 had been erroneously charged by the bank as $900.
f) Bank service charges for June amounted to $40.
Required -
1. Prepare a bank reconciliation.
2. Journalize the necessary entries. The accounts have not been closed. If a box does not require an entry, leave it blank or enter "0".
If a balance sheet were prepared for Online Medical Co. on June 30, 2012, what amount should be reported as cash?