Wonderland Inc. has introduced new accounting software and have been facing lot of challenges with reconciling its bank statement and have asked you to help them to identify the differences between bank balance and the bank statement. Wonderland bank with DB Bank (DB) and is wondering if bank statement reflect accurate information. Following are the details for the month of July 2021 Balance as per DB as at July 31st was $103,220 Cheque amounting to $5,579 was issued to Carry over Corp on 28th July which was not presented to the bank Cheque amounting to $2,425 was received on 30th July 2021 which was deposited in the bank on July 31st, cashier confirmed that the cheque was deposited before the closing hours but bank statement did not have deposit of this amount Surex Ltd issued the cheque amounting to $1,998 and $3,593 that were deposited on July 31st. cheque were not recorded by the bank The below two cheques were issued to Matra Inc. but were still outstanding Chq Date Issued Amount 10009 11-Jun $10,040 9994 2-Mar $9,514 Unrecorded receipts at the end of the months were as below P a g e 8 | 9 Customer details Payment details Amount Drinkit EFT on July 11th $1,872 Greycam EFT on July 18th $3,400 EFT made to Ravel Corp on July 31st for $6,512, bank statement for July did not have this amount Cheque written on 16th July to Salvation for $2,780 was still outstanding, cheque #10112 The below two cheques were deposited but not recorded by bank Customer details Chq Amount IT Systems 002254 $1,517 True care 12229 $2,980 Accountant forgot to record the below electronic fund transfers from the customers Customer details Payment details Amount Freeflow Corp EFT on 30th July $2,525 Try it EFT on 31st July $3,350 Honda Trans EFT on 31st July $3,351 Cheque amounting to $807 was issued to Letapis (chq #10091 Dt 1st July) was incorrectly entered in cash payment as $708 Below three cheques were returned by bank due to non-sufficient funds Customer details Chq Amount PlayB 988 $1,444 Devinde Inc 477 $2,050 Crazt Corp 1125 2966 Finally there were bank service charges for the month which were not recorded in cash book, $325 Balance as per Cash account as at July 31st was $69,325 Required Prepare bank reconciliation for the month of July Pass necessary Journal entries to record the results of the bank reconciliation
Wonderland Inc. has introduced new accounting software and have been facing lot of challenges
with reconciling its bank statement and have asked you to help them to identify the differences
between bank balance and the bank statement.
Wonderland bank with DB Bank (DB) and is wondering if bank statement reflect accurate
information.
Following are the details for the month of July 2021
Balance as per DB as at July 31st was $103,220
Cheque amounting to $5,579 was issued to Carry over Corp on 28th July which was not
presented to the bank
Cheque amounting to $2,425 was received on 30th July 2021 which was deposited in the
bank on July 31st, cashier confirmed that the cheque was deposited before the closing
hours but bank statement did not have deposit of this amount
Surex Ltd issued the cheque amounting to $1,998 and $3,593 that were deposited on July
31st. cheque were not recorded by the bank
The below two cheques were issued to Matra Inc. but were still outstanding
Chq Date Issued Amount
10009 11-Jun $10,040
9994 2-Mar $9,514
Unrecorded receipts at the end of the months were as below
P a g e 8 | 9
Customer details Payment details Amount
Drinkit EFT on July 11th $1,872
Greycam EFT on July 18th $3,400
EFT made to Ravel Corp on July 31st for $6,512, bank statement for July did not have this
amount
Cheque written on 16th July to Salvation for $2,780 was still outstanding, cheque #10112
The below two cheques were deposited but not recorded by bank
Customer details Chq Amount
IT Systems 002254 $1,517
True care 12229 $2,980
Accountant forgot to record the below electronic fund transfers from the customers
Customer details Payment details Amount
Freeflow Corp EFT on 30th July $2,525
Try it EFT on 31st July $3,350
Honda Trans EFT on 31st July $3,351
Cheque amounting to $807 was issued to Letapis (chq #10091 Dt 1st July) was incorrectly
entered in cash payment as $708
Below three cheques were returned by bank due to non-sufficient funds
Customer details Chq Amount
PlayB 988 $1,444
Devinde Inc 477 $2,050
Crazt Corp 1125 2966
Finally there were bank service charges for the month which were not recorded in
book
Balance as per Cash account as at July 31st was $69,325
Required
Prepare bank reconciliation for the month of July
Pass necessary
Step by step
Solved in 3 steps
