The bank statement for ABC Company as of June 30,2015 indicated balance br. 9143.11. The accounting records of the Company indicate the following data: Cash balance as of June 1,201.5. \( \qquad \) Br. 3943.50 Total cash reciept for June. \( \qquad \) 28971.60 Total amount of check paid. \( \qquad \) 28388.85 Comparision of the bank statement and the accompanying canceled checks and memorandums with the records revealed the following reconciling items: 1. Cheeks outstanding, br. 5265.27 2. A deposit in transit was br: 1852.21 3. The bank had collected for the company br, 1030 on an interset-bearing note left for collection. The face of the nofe was br, 1000. 4. A cheque written for br. 139 returred with the statement had been ineorrectly charged by bonk as br. 157 , 5. A check for br. 30 had been recurded erroneously recorded as br. 240 by company, The cheek was for the payment of account payable. 6. Bank service charges for June amounted to br. 18.20 Required: Task 2.1 Prepare bank reconcilation for the month of June 2015. Task 2.2 Record the necessary journal entries.

### **Task 2.1: Prepare Bank Reconciliation for June 2015** **ABC Company** **Bank Reconciliation as of June 30, 2015** --- **1. Adjusted Bank Balance** | **Description** | **Amount (Br.)** | |-----------------------------|------------------| | **Balance as per Bank Statement** | 9,143.11 | | **Add:** Deposit in Transit | 1,852.21 | | **Less:** Outstanding Checks | (5,265.27) | | **Add:** Collection of Note (Item 3)| 1,030.00 | | **Adjusted Bank Balance** | **5,730.05** | --- **2. Adjusted Cash Book Balance** | **Description** | **Amount (Br.)** | |---------------------------------------------|------------------| | **Balance as per Books** | 4,526.25 | | **Add:** Collection of Note (Item 3) | 1,030.00 | | **Add:** Correction of Recording Error (Item 5)| 210.00 | | **Less:** Overcharge on Returned Check (Item 4)| (18.00) | | **Less:** Bank Service Charges (Item 6) | (18.20) | | **Adjusted Cash Book Balance** | **5,730.05** | --- **_Both Adjusted Balances Match at Br. 5,730.05_** --- ### **Task 2.2: Record the Necessary Journal Entries** Based on the reconciling items identified, the following journal entries are required: --- **1. Collection of Interest-Bearing Note by Bank (Item 3)** *The bank collected Br. 1,030 on behalf of the company, which includes Br. 1,000 for the note and Br. 30 for interest.* ```plaintext Dr. Cash 1,030.00 Cr. Notes Receivable 1,000.00 Cr. Interest Income 30.00 ``` --- **2. Correction of Overcharge on Returned Check (Item 4)** *The bank incorrectly charged Br. 157 instead of Br. 139 for a returned check, resulting in an overcharge of Br. 18.* ```plaintext Dr. Accounts Payable 18.00 Cr. Cash 18.00 ``` --- **3. Correction of Recording Error for Check Payment (Item 5)** *The company erroneously recorded a check of Br. 30 as Br. 240, overstating the cash payment by Br. 210.* ```plaintext Dr. Cash 210.00 Cr. Accounts Payable 210.00 ``` --- **4. Recording of Bank Service Charges (Item 6)** *Bank service charges for June amounted to Br. 18.20.* ```plaintext Dr. Bank Service Charges Expense 18.20 Cr. Cash 18.20 ``` --- ### **Summary of Journal Entries** | **Date** | **Account Title** | **Debit (Br.)** | **Credit (Br.)** | |---------------|-------------------------------------|------------------|-------------------| | June 30, 2015 | Cash | 1,030.00 | | | | Notes Receivable | | 1,000.00 | | | Interest Income | | 30.00 | | June 30, 2015 | Accounts Payable | 18.00 | | | | Cash | | 18.00 | | June 30, 2015 | Cash | 210.00 | | | | Accounts Payable | | 210.00 | | June 30, 2015 | Bank Service Charges Expense | 18.20 | | | | Cash | | 18.20 | --- These journal entries ensure that the company's accounting records accurately reflect all transactions and adjustments identified during the bank reconciliation process for June 2015.