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COMM 217 Chap 6-7 connect practice (assign) Concordia University
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COMM 217 Chap 6-7 connect practice (assign) Concordia University
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COMM 217 Chap 6-7 connect practice (assign) Concordia UniversityCHAPTER 6
QUESTION 1
The June 30, 2020 bank statement for Zoltan Company and the June ledger accounts for cash are summarized below:
Bank Statement
Cheque
Deposits Balance
s
Balance, June 1, 2020 $ 6,900
Deposits during June $ 16,200 23,100
Cheques cleared through
$ 17,000 6,100
June
Bank service charges 40 6,060
Balance, June 30, 2020 6,060
Cash in Bank
June 1 Balance 6,900 June Cheques written 19,000
June Deposits 18,100
Cash on Hand
June 30 Balance 300
Required:
1. Reconcile the bank balance to the book balance at June 30, 2020. A comparison of the cheques written with the cheques that
have cleared the bank shows outstanding cheques of $2,000. No deposits in transit were carried over from May, but a deposit is in
transit at the end of June.
ZOLTAN COMPANY
Bank Reconciliation, June 30, 2020
Company's Books Bank Statement
Ending balance per cash account $6,000 Ending balance per bank statement $6,060
Additions: Additions:
Deposit in transit 1,900
6,000 7,960
Deductions: Deductions:
Bank service charge 40 Outstanding cheques 2,000
Ending correct cash balance $5,960 Ending correct cash balance $5,960
Ending balance per cash account ($6,900 + $18,100 − $19,000) = $6,000
Deposit in transit $18,100 − $16,200 = $1,900.
2. Prepare any journal entries that should be made as a result of the bank reconciliation. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
No Transaction General Journal Debit Credit
1 1 Bank service charge expense 40
Cash 40
3. What is the balance in the cash in bank account after the reconciliation entries?
Cash balance $5,960
The balance in the Cash account after the above entry has been posted is the same as the correct cash balance per the bank
reconciliation; $5,960.
4. What is the total amount of cash that should be reported on the statement of financial position at June 30, 2020?
Statement of financial position (June 30, 2020):
, Current assets:
Cash $6,260
Cash ($5,960 + $300) = $6,260
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