Catalina Holdings Ltd. (CHL), a Calgary-based property management company, is owned by Leslie Smeal. Leslie is trying to prepare a bank reconciliation for CHL’s bank account for October 31, 2016. A review of CHL’s bank statement and accounting records showed the following:
1. The cash balance per the bank statement was $26,936.89.
2. The accounting records showed a balance in the cash account of $21,260.16.
3. Two cheques that had been written and mailed by CHL had not been cashed. These were cheques #5109 for $10,505.10 and #5112 for $5,303.07.
4. CHL was paid $19.99 in interest by the bank during October.
5. A cheque for $1,125.58 that had been part of CHL’s deposit on October 23 was not honoured by the bank because the client had insufficient funds.
6. Bank service charges for the month were $92.
7. Cheque #5101, which was for a utility payment, was incorrectly recorded by CHL’s bookkeeper as $960 when the actual cheque was for $690 (which was the correct amount owing by CHL).
8. The bank had collected $3,110.25 on behalf of CHL related to a note receivable from one of CHL’s clients. This included $110.25 in interest.
9. A deposit for $12,314.10 was made through the night deposit slot late on the evening of October 31.
a. Prepare a bank reconciliation at October 31, 2016.
b. Prepare the journal entries necessary as a result of the bank reconciliation

  • CreatedJune 11, 2015
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