The following information is available to reconcile Cloy

The following information is available to reconcile Cloy

WORK SHOWN 1. The following information is available to reconcile CloyCompanys book balance of cash with its bank statement cash balanceas of June 30. The June 30 cash balance according to the accountingrecords is $58,542, and the bank statement cash balance for thatdate is $68,047.a. The bank erroneously cleared a $395 check against the account inJune that was not issued by Cloy. The check documentation includedwith the bank statement indicates the check was actually issued byClare Co.b. On June 30, the bank issued a credit memorandum for $35 interestearned on Cloys account.c. When the June checks are compared with entries in the accountingrecords, it is found that Check No. 1727 had been correctly drawnfor $1,450 to pay for advertising but was erroneously entered inthe accounting records as $1,540.d. A credit memorandum indicates that the bank collected $9,000cash on a note receivable for Cloy, deducted a $30 collection fee,and credited the balance to the companys Cash account. Cloy didnot record this transaction before receiving the statement.e. A debit memorandum of $895 is enclosed with the bank statementfor an NSF check for $870 received from a customer. The bankassessed a $25 fee for processing it.f. Cloys June 30 daily cash receipts of $6,325 were placed in thebanks night depository on that date, but do not appear on the June30 bank statement.g. Cloys June 30 cash disbursements journal indicates that CheckNo. 1737 for $4,830 and Check No. 1740 for $3,280 were both writtenand entered in the accounting records, but are not among thecanceled checks.h. A debit memorandum for $85.00 indicates the bank deducted theannual lock box fee for the company.1. Prepare the bank reconciliation for this company as of June30.2. Prepare the journal entries necessary to bring the companysbook balance of cash into conformity with the reconciled cashbalance as of June 30.?


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