Question

Sergio Lucas worked long hours during the summer and saved enough money to pay his tuition and living expenses to continue his studies at the local university. On September 1, he downloaded from the bank’s website his bank statement for August to make sure that the bank had not made any errors related to his bank account. Sergio has had a habit of verifying all the entries in his bank account ever since he discovered that the bank had charged him a service fee for a transaction that was unrelated to his account. After comparing the bank statement with the entries he has made in his chequebook, Sergio found that the bank statement showed a balance of $ 12,506.60 but his chequebook showed a balance of $ 12,651.65 on August 31, a difference of $ 145.05. He decided to compare the entries in his chequebook with those in the bank statement, hoping that the bank owes him this difference. Sergio’s review of the bank statement showed the following:
a. Three cheques (# 124, # 125, and # 126) that he wrote in late August have not been withdrawn from his bank account yet. They totalled $ 619.35.
b. An automatic deduction of $ 44.10 was made to pay the hydro bill for August.
c. Another automatic deduction of $ 55.30 was made to pay for telecommunication services from Telus Corp.
d. He forgot to record in his chequebook two withdrawals from instant teller machines totalling $ 300.
e. A cheque for $ 385 that he deposited in the bank the night of August 31 did not appear on the bank statement.
f. Sergio discovered that he recorded cheque # 123 as $ 96.25 but the correct amount that cleared his bank account was $ 69.25.
g. The bank charged him a service fee of $ 7 for August transactions.
Required:
1. Assume the role of Sergio and prepare a bank reconciliation at August 31.
2. Which amounts should Sergio enter into his chequebook to avoid making any errors in reconciling his chequebook with the bank statement for September?


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  • CreatedAugust 04, 2015
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