For the month of July, the cash records reflect a balance of $14,930 while its bank statement balance was $14,150. A more detailed review reveals several reconciling items: i. Deposits in transit amounted to $9,190. ii. Included in the bank statement as at July 31, 2021 were the following memoranda: • Credit Memorandum: a note for $1,690 and interest of $110 had been collected by the bank and the bank charged a collection fee of $40. • Debit Memorandum: $90 for service charges for the month of July 2021. iii. Outstanding cheques: • Cheque #224 for $4,340 • Cheque #232 for $1,254 • Cheque #237 for $2,453 iv. Check no. 242 was issued to pay for purchases (Accounts Payables) in the amount of $791 but had been entered in the cash journal as $719 in error. v. Included in the company deposits for July 2021 was a cheque for $1,235, but the bank has returned this cheque as NSF. REQUIRED: d. Prepare the Bank Reconciliation Statement.
For the month of July, the cash records reflect a balance of $14,930 while its bank statement balance was $14,150. A more detailed review reveals several reconciling items: i. Deposits in transit amounted to $9,190. ii. Included in the bank statement as at July 31, 2021 were the following memoranda: • Credit Memorandum: a note for $1,690 and interest of $110 had been collected by the bank and the bank charged a collection fee of $40. • Debit Memorandum: $90 for service charges for the month of July 2021. iii. Outstanding cheques: • Cheque #224 for $4,340 • Cheque #232 for $1,254 • Cheque #237 for $2,453 iv. Check no. 242 was issued to pay for purchases (Accounts Payables) in the amount of $791 but had been entered in the cash journal as $719 in error. v. Included in the company deposits for July 2021 was a cheque for $1,235, but the bank has returned this cheque as NSF. REQUIRED: d. Prepare the Bank Reconciliation Statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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