Question

Purple Bank Dute Description Det C BEC's adjusted cash general ledger balance at January 31, 2036 $5,16. The bookkeeper has compiled the following information and notes 12,500 ILTON $ 622 Depot in December 31, 2017 Outstanding chegues December 31, 2017 1. LABO 23 Amount 14.250 12.00 12.ME 14 77 70 88 $ $ $ 180 da DORTY GOOD - NOT ODPOST 05-18 NIGHT DEPOST NOTLO NE 11- NOT DEPOT - Director 15- Mered 11 OCR 15--OGRS NOM DOO 161 OORTO DO SOOMS INGEPOST 2014 2- NO DEPOSIT 15.00 All 14,7 Rece Jauny Depositing 1. 14. 22 Amount $ 05-Jan-18 Cheques and Com 10-18 Cheques and Con 14.14 19-18 Chand Can 26-18 Chers and Cashot 31- Cheques and Cash LO $ $ $ $ $ Rec Co. Cheque Register - Jan 2018 Che Amount $ $ 484 84 $ Las As $ 30 $ 4.520 $ 52 $ $ L950 1.6 825 1,020 BASS 10:58 U20 DOO 472 1,000 26 13 1112 26 1444 BIGHT DEPOST LORD Required • Prepare the bank reconciliation for Reco's bank accountary 31, 2018 - Prepare any adjusting journal entries needed awing from the bank reconciliation Show transcribed image text

Answer 1

a )

RECY CO.
Bank reconciliation
Particulars	Amount $	Particulars	Amount $
Balance as per bank	5596	balance as per cash book	5386
Additions:		Additions:
wrong entry for Ch#82	18	Ch#79	128
MSF Ch - Til Co.	1430	Direct deposit	594
NSF fee	28	Ch#86	880
MM insurance - direct payment	490	Ch#88	67
wrong entry for Ch#85	54	Ch#90	725
bank charges	26	Ch#91	833
Night deposit	1020	Ch#93	36
		Interest	13
Total additions	3066	Total additions	3276
Deductions:		Deductions:
Ch#79	128	wrong entry for Ch#82	18
direct deposit	594	MSF Ch - Til Co.	1430
Ch#86	880	NSF fee	28
Ch#88	67	MM insurance - direct payment	490
Ch#90	725	wrong entry for Ch#85	54
Ch#91	833	bank charges	26
Ch#93	36	Night deposit	1020
Interest	13
Total deductions	3276	Total deductions	3066
Balance as per cash book	5386	balance as per bank	5596

b ) Adjusting journal entries :

Date	Accounts title & Explanation	Debit $	Credit $
Jan 31,2018	Accounts receivable	1430
	Cash		1430
	(To record NSF cheque from Til Co.)
	Bank charges	28
	Cash		28
	(To record NSF charges)
	Insurance charges	490
	Cash		490
	(Torecord insurance of the month of January)
	Cash	594
	Accounts receivable		594
	(To record direct deposit by customer-XYZ Co.)
	Accounts payable	54
	Cash		54
	(To record correction of entry for Ch#85)
	Bank charges	26
	cash		26
	(To record bank charges for the month)
	Cash	13
	Interest revenue		13
	(To record interest on bank deposit)