When Sunland Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $19,426 as at October 31. Sunland's general ledger showed a cash balance of $20,400 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. 2. 3. 4. 5. 6. Bank service and credit card charges for the month were $7. A cheque, in the amount of $570, from one of Sunland's customers that had been deposited during the last week of October was returned with the bank statement as "NSF." Cheque #3421, which was a payment for utilities expenses, had been correctly written for $870 but had been incorrectly recorded in the general ledger as $780. Sunland had written and mailed out cheques with a value of $2,570 that had not yet cleared the bank account. During the month, the bank collected a $2,700 note receivable plus the outstanding interest of $243 on behalf of Sunland. The interest had already been accrued. The cash receipts for October 31 amounted to $5,820 and had been deposited in the night drop slot at the bank on the evening of October 31. These were not reflected on the bank statement for October. C Prepare the bank reconciliation at October 31. (List items that increase balance as per bank & books first.) SUNLAND HOLDINGS LTD. Bank Reconciliation October 31 $
When Sunland Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $19,426 as at October 31. Sunland's general ledger showed a cash balance of $20,400 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. 2. 3. 4. 5. 6. Bank service and credit card charges for the month were $7. A cheque, in the amount of $570, from one of Sunland's customers that had been deposited during the last week of October was returned with the bank statement as "NSF." Cheque #3421, which was a payment for utilities expenses, had been correctly written for $870 but had been incorrectly recorded in the general ledger as $780. Sunland had written and mailed out cheques with a value of $2,570 that had not yet cleared the bank account. During the month, the bank collected a $2,700 note receivable plus the outstanding interest of $243 on behalf of Sunland. The interest had already been accrued. The cash receipts for October 31 amounted to $5,820 and had been deposited in the night drop slot at the bank on the evening of October 31. These were not reflected on the bank statement for October. C Prepare the bank reconciliation at October 31. (List items that increase balance as per bank & books first.) SUNLAND HOLDINGS LTD. Bank Reconciliation October 31 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:When Sunland Holdings Ltd. received its bank statement for the month of October, it showed that the
company had a cash balance of $19,426 as at October 31. Sunland's general ledger showed a cash
balance of $20,400 at that date. A comparison of the bank statement and the accounting records
revealed the following information:
1.
2.
3.
4.
5.
6.
Bank service and credit card charges for the month were $7.
A cheque, in the amount of $570, from one of Sunland's customers that had been deposited
during the last week of October was returned with the bank statement as "NSF."
Cheque #3421, which was a payment for utilities expenses, had been correctly written for
$870 but had been incorrectly recorded in the general ledger as $780.
Sunland had written and mailed out cheques with a value of $2,570 that had not yet cleared
the bank account.
During the month, the bank collected a $2,700 note receivable plus the outstanding interest
of $243 on behalf of Sunland. The interest had already been accrued.
The cash receipts for October 31 amounted to $5,820 and had been deposited in the night
drop slot at the bank on the evening of October 31. These were not reflected on the bank
statement for October.
Prepare the bank reconciliation at October 31. (List items that
increase balance as per bank & books first.)
S
>
SUNLAND HOLDINGS LTD.
Bank Reconciliation
October 31
LA
Transcribed Image Text:repare any journal entries required from the reconciliation. (Credit account titles are automatically
dented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for th
ccount titles and enter O for the amounts.)
Date Account Titles and Explanation
Oct.
31
(To record EFT collections)
Debit
31
(To record EFT collections)
(To record account receivable)
(To adjust cheque #3421)
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