Energy Ltd. collected the latest bank statement for the month of August 2022. All entries appearing on the bank statement that had not been entered into the cash receipts and cash payments journals were made. The resulting balance of the Cash at Bank account in the ledger on 31 August 2022 was $16,198.73 Dr. The balance shown on the Bank Statement on 31 August 2022 was $15,079.27 Cr.

The following items recorded in the cash journals did not appear in the Bank Statement.

1. A deposit made on 31 August of $2,500.12;

2. Cheques written during August that had not been presented for payment were:

Cheque no. 411         $527.26

                   414         $606.40

                   416          $283.00

A cheque written for $26 appeared incorrectly in the Bank Statement as $62.

Requirement:

Prepare the Bank Reconciliation Statement on 31 August 2022. (6 marks)

Transcribed Image Text:

icebreaker Company (a U.S.-based company sells parts to a foreign customer on December 1, 2020, with payment of 18.000 dinars to be recelved on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020. to sell 18.000 dinars on March 1, 2021. The forward polnts on the forward contract are excluded in assessing hedge offectiveness and are amortized to net Income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Forward Rate Date Decenber 1, 2020 Decenber 31, 2828 March 1, 2021 Spot Rate $ 3.60 3.70 1.85 (to Karch 1. 2021) $ 3.675 3.8ee N/A Icebreaker must ciose its books and prepare financial statements at December 31 a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a forelgn currency recelvable, prepare Journal entries for the sale and forelgn currency forward contract in US. doliars. a-2. What is the Impact on 2020 net Income? a-3. What is the impact on 2021 net Income? a-4. What is the impact on net income over the two accounting perlods? b-1. Assuming that Icebreaker designates the forward contract as a fair value hedge of a forelgn currency recelvable, prepare Journal entries for the sale and forelgn currency forward contract in US. dollars. b-2 What is the Impact on 2020 net Income? b-3. What is the impact on 2021 net Income? b-4. What is the impact on net Income over the two accounting perlods? icebreaker Company (a U.S.-based company sells parts to a foreign customer on December 1, 2020, with payment of 18.000 dinars to be recelved on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020. to sell 18.000 dinars on March 1, 2021. The forward polnts on the forward contract are excluded in assessing hedge offectiveness and are amortized to net Income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Forward Rate Date Decenber 1, 2020 Decenber 31, 2828 March 1, 2021 Spot Rate $ 3.60 3.70 1.85 (to Karch 1. 2021) $ 3.675 3.8ee N/A Icebreaker must ciose its books and prepare financial statements at December 31 a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a forelgn currency recelvable, prepare Journal entries for the sale and forelgn currency forward contract in US. doliars. a-2. What is the Impact on 2020 net Income? a-3. What is the impact on 2021 net Income? a-4. What is the impact on net income over the two accounting perlods? b-1. Assuming that Icebreaker designates the forward contract as a fair value hedge of a forelgn currency recelvable, prepare Journal entries for the sale and forelgn currency forward contract in US. dollars. b-2 What is the Impact on 2020 net Income? b-3. What is the impact on 2021 net Income? b-4. What is the impact on net Income over the two accounting perlods?

Answer rating: 100% (QA)

Answer Bank Reconciliation Statement August 31 2022 Cash at Bank per Ledger ... View the full answer