The cash data of Alta Vista Toyota for June 20X4 follow:
|
Cash |
|||||
|
Date |
Item |
Jrnl. Ref. |
Debit |
Credit |
Balance |
|
June 1 |
Balance |
5,011 |
|||
|
30 |
CR6 |
10,578 |
15,589 |
||
|
30 |
CP11 |
10,924 |
4,665 |
|
Cash Receipts (CR) |
Cash Payments (CP) |
||
|
Date |
Cash Debit |
Check No. |
Cash Credit |
|
June 2 |
$ 4,174 |
3113 |
$ 891 |
|
8 |
407 |
3114 |
147 |
|
10 |
559 |
3115 |
1,930 |
|
16 |
2,187 |
3116 |
664 |
|
22 |
1,854 |
3117 |
1,472 |
|
29 |
1,060 |
3118 |
1,000 |
|
30 |
337 |
3119 |
632 |
|
Total |
$10,578 |
3120 |
1,675 |
|
3121 |
100 |
||
|
3122 |
2,413 |
||
|
Total |
$10,924 |
||
Alta Vista received the following bank statement on June 30, 20X4:
|
Bank Statement for June 20X4 |
||
|
Beginning balance |
$ 5,011 |
|
|
Deposits and other additions: |
||
|
June 1 |
$ 326 EFT |
|
|
4 |
4,174 |
|
|
9 |
407 |
|
|
12 |
559 |
|
|
17 |
2,187 |
|
|
22 |
1,701 BC |
|
|
23 |
1,854 |
11,208 |
|
Checks and other deductions: |
||
|
June 7 |
$ 891 |
|
|
13 |
1,390 |
|
|
14 |
903 US |
|
|
15 |
147 |
|
|
18 |
664 |
|
|
21 |
219 EFT |
|
|
26 |
1,472 |
|
|
30 |
1,000 |
|
|
30 |
20 SC |
(6,706) |
|
Ending balance |
$ 9,513 |
Additional data for the bank reconciliation include the following:
a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment.
b. The unauthorized signature check was received from a customer.
c. The correct amount of check number 3115, a payment on account, is $1,390. (Alta Vista’s accountant mistakenly recorded the check for $1,930.)
Required
1. Prepare the Alta Vista Toyota bank reconciliation at June 30, 20X4.
2. Describe how a bank account and the bank reconciliation help the general manager control Alta Vista’s cash.