On December 31, Blossom Ltd. had a cash balance of $18,390 in its general ledger. The bank statement from the National Bank on that date showed a balance of $15,330. A comparison of the bank statement with the Cash account revealed the following: 1. 2. 3. 4. 5. (a) Cheques outstanding on November 30 totalled $3,980. Of these, $2,600 worth cleared the bank in December. All cheques written in December cleared the bank in December. A deposit of $2,390 made on December 31, was not recorded by National Bank until January 5. Supplies of $1,010 were paid via EFT during the month of December. The company has already recorded these. The bank statement showed automatic EFT withdrawals for utility payments totalling $1,500. The bank statement included service charges and debit and credit card processing fees of $550. Prepare the bank reconciliation at December 31. (List items that increase balance as per bank & books first.)
On December 31, Blossom Ltd. had a cash balance of $18,390 in its general ledger. The bank statement from the National Bank on that date showed a balance of $15,330. A comparison of the bank statement with the Cash account revealed the following: 1. 2. 3. 4. 5. (a) Cheques outstanding on November 30 totalled $3,980. Of these, $2,600 worth cleared the bank in December. All cheques written in December cleared the bank in December. A deposit of $2,390 made on December 31, was not recorded by National Bank until January 5. Supplies of $1,010 were paid via EFT during the month of December. The company has already recorded these. The bank statement showed automatic EFT withdrawals for utility payments totalling $1,500. The bank statement included service charges and debit and credit card processing fees of $550. Prepare the bank reconciliation at December 31. (List items that increase balance as per bank & books first.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On December 31, Blossom Ltd. had a cash balance of $18,390 in its general ledger. The bank statement from the National Bank on that
date showed a balance of $15,330. A comparison of the bank statement with the Cash account revealed the following:
1.
2.
3.
4.
5.
(a)
Cheques outstanding on November 30 totalled $3,980. Of these, $2,600 worth cleared the bank in December. All cheques
written in December cleared the bank in December.
A deposit of $2,390 made on December 31, was not recorded by National Bank until January 5.
Supplies of $1,010 were paid via EFT during the month of December. The company has already recorded these.
The bank statement showed automatic EFT withdrawals for utility payments totalling $1,500.
The bank statement included service charges and debit and credit card processing fees of $550.
Prepare the bank reconciliation at December 31. (List items that increase balance as per bank & books first.)
BLOSSOM LTD.
Bank Reconciliation
December 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb23282da-a69f-4dfb-ade1-871f80d5949d%2Fec0b5a4b-2c09-44fa-b537-cc7cfca41af2%2Fd0vlger_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 31, Blossom Ltd. had a cash balance of $18,390 in its general ledger. The bank statement from the National Bank on that
date showed a balance of $15,330. A comparison of the bank statement with the Cash account revealed the following:
1.
2.
3.
4.
5.
(a)
Cheques outstanding on November 30 totalled $3,980. Of these, $2,600 worth cleared the bank in December. All cheques
written in December cleared the bank in December.
A deposit of $2,390 made on December 31, was not recorded by National Bank until January 5.
Supplies of $1,010 were paid via EFT during the month of December. The company has already recorded these.
The bank statement showed automatic EFT withdrawals for utility payments totalling $1,500.
The bank statement included service charges and debit and credit card processing fees of $550.
Prepare the bank reconciliation at December 31. (List items that increase balance as per bank & books first.)
BLOSSOM LTD.
Bank Reconciliation
December 31
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