The following items relate to the activities of Doke Company Ltd. during June 2018:
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a. |
At June 30, the cash account shows a balance of $1,200. |
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b. |
The June bank statement shows a balance of $64. |
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c. |
Of four cheques not returned by the bank in May, one still has not been returned in June: cheque no. 208 in the amount of $80. |
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d. |
Doke deposited cash received on June 29 (in the amount of $1,000) and June 30 (in the amount of $200) in the night depository on June 29 and 30, a Saturday and Sunday, respectively; these deposits do not appear on the bank statement. |
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e. |
On reviewing the cheques returned with the bank statement, Doke found the following: cheque no. 214, properly made out for $45, was coded as a debit to Office Supplies Expense and a credit to the Cash general ledger account for $54; a cheque of Poke Company in the amount of $200 was incorrectly processed through Doke’s bank account by the bank. |
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f. |
Bank service charges for the month totalled $5. |
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g. |
Cheque no. 261 for $180 written in June was not returned with the cancelled cheques. |
Required:
- Prepare a bank reconciliation at June 30, 2018.
- Prepare the necessary adjusting journal entries to make the Cash general ledger account agree with the bank reconciliation adjusted cash balance at June 30.
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