Question

The following information is available to reconcile Hinckley company's book balance of cash with its bank statement cash balance as of june 30. The june 30 cash balance according to the accounting records is $57.542 and bank statement cash balance for that date is $67.047. The bank erroneously cleared a $295 check against the account in June that was not issued by Hinckley. The check documentation induded with the bank statement Indicates the check was actually issued by Dancer Co. On June 30, the bank issued a credit memorandum for $35 interest earned on Hinckley's account When the June checks are compared with entries in the accounting records, it is found that Cheek No. 1727 had been correctly drawn (or $1,450 to pay for advertising but was erroneously entered in the accounting records as $1,540. A credit memorandum indicates that the bank collected $9,000 cash on a note receivable for Hinckley, deducted a $30 collection fee, and credited the balance to the company's Cash account Hinckley did not record this transaction before receiving the statement. A debit memorandum of $865 is enclosed with the bank statement for an NSF check for $840 received from a customer. The bank assessed a $25 fee for processing it. Hinckley's June 30 daily cash receipts of $6,425 were placed in the bank's night depository on that date, but do not appear on the June 30 bank statement. Hinckley's Juno 30 cash disbursements journal indicates that Check No. 1737 for $4,830 and Check No. 1740 for $3,280 were both written and entered in the accounting records, but are not among the canceled checks. A debit memorandum for $115.00 indicates the bank deducted the annual lock box fee for the company

 

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