GENERAL LEDGER—MATCHA CREATIONS

Cash
Date Explanation Ref. Debit Credit Balance
2018
June 1 Balance 2,657
1 750 3,407
3 Check #600 625 2,782
3 Check #601 95 2,687
8 Check #602 56 2,631
9 1,050 3,681
13 Check #603 425 3,256
20 155 3,411
28 Check #604 297 3,114
28 110 3,224

PREMIER BANK
Statement of Account—Matcha Creations
June 30, 2018

Checks and
Date Explanation Other Debits Deposits Balance
May 31 Balance 3,256
June 1 Deposit 750 4,006
6 Check #600 625 3,381
6 Check #601 95 3,286
8 Check #602 56 3,230
9 Deposit 1,050 4,280
10 NSF Check 135 4,145
14 Check #603 452 3,693
20 Deposit 3,818
23 EFT – Telus 85 125 3,733
28 Check #599 361 3,372
30 Bank charges 13 3,359

Additional information:
1. On May 31, there were two outstanding checks: #595 for NT$238 and #599 for NT$361.
2. Premier Bank made a posting error to the bank statement: check #603 was issued for NT$425,
not NT$452.
3. The deposit made on June 20 was for NT$125 that Mei-ling received for teaching a class.
Mei-ling made an error in recording this transaction.
4. The electronic funds transfer (EFT) was for Mei-ling’s utilities expense.
5. The NSF check was from Ron Black. Mei-ling received this check for teaching a class to Ron’s
children. Mei-ling contacted Ron, and he assured her that she will receive a check in the mail
for the outstanding amount of the invoice.

Instructions
(a) Prepare Matcha Creations’ bank reconciliation for June 30.
(b) Prepare any necessary adjusting entries at June 30.
(c) If a statement of financial position is prepared for Matcha Creations at June 30, what balance will be
reported as cash in the current assets section?

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