Excel Communications had a computer failure on February 1, 2014, which resulted in the loss of data, including the balance of its Cash account and its bank reconciliation from January 31, 2014. The accountant, Brad Eyers, has been able to obtain the following information from the records of the company and its bank:
a. An examination showed that two cheques (#461 for $645.00 and #492 for $225.00) had not been cashed as of February 1. Eyers recalled that there was only one deposit in transit on the January 31 bank reconciliation, but was unable to recall the amount.
b. The cash receipts and cash payments journal contained the following entries for February 2014:

c. The bank provided the following statement as of February 28, 2014:

d. The deposit made on February 16 was for the collection of a note receivable ($540.00) plus interest.
e. The EFTs had not yet been recorded by Excel Communications since the bank statement was the first notification of them.
€¢ The February 17 EFT was for the monthly payment on an insurance policy for Excel Communications.
€¢ The February 19 and 24 EFTs were collections on accounts receivable.
€¢ The February 22 EFT was in error-the transfer should have been to Accel Communications.
f. The NSF cheque on February 26 was received from a customer as payment of $1,792.50 for installation of a satellite purchased from Excel.
g. Cheque #504 was correctly written for $860.00 for the purchase of inventory (assume perpetual), but incorrectly recorded by the cash payments clerk.
Required
1. Prepare a bank reconciliation as of February 28, 2014, including the calculation of the book balance of February 28, 2014.
2. Prepare all journal entries that would be required by the bank reconciliation.

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Cash Receipts: Cash Payments: Cheque # Amounts Amount $ 876.00 1,230.00 1,545.00 612.00 $ 678.00 499 500 651.00 501 2,578.50 846.00 502 2,460.00 $6,723.00 503 327.00 504 505 820.00 void 314.00 506 507 543.00 $6,757.50 Date Cheques and Other Debits Deposits and Other Credits Balance Feb. #500 651.00 660.00 3,579.00 #492 225.00 3,354.00 #501 2,578.50 775.50 876.00 1,651.50 1,558.50 1,116.00 1,836.00 16 # 499 678.00 585.00 17 EFT 442.50 19 EFT 720.00 21 #503 327.00 1,230.00 2,739.00 2,215.50 2,686.50 2,439.00 2,401.50 22 #504 860.00 EFT 336.50 24 EFT 471.00 26 NSF 1,792.50 1,545.00 27 SC 37.50 27 #507 543.00 612.00 2,470.50