In connection with an audit you are given the following worksheet:

Cheques drawn but not paid by bank
No. Amount
573....................................................$67.27
724.......................................................9.90
903....................................................456.67
907....................................................305.50
911....................................................482.75
913....................................................550.00
914....................................................366.76
916......................................................10.00
917....................................................218.90
$2......................................................267.75
REQUIRED
a. Prepare a corrected reconciliation.
b. Prepare journal entries for items that should be adjusted prior to closing the books.

Transcribed Image Text:

Bank reconciliation 31 December 20X9 $17 174.86 Balance per ledger, 31 December 20X9 Add Cash receipts received on the last day of December and charged to cash at bank on books but not deposited Debit for customer's cheque returned unpaid (cheque is on hand but no entry has been made on the books) Debit for bank service charge o December 2 662.25 200.00 5.50 $20142.61 Deduct Cheques drawn but not paid by bank (see detailed list below) Direct credit for proceeds of a sale which has not been recorded as collected Cheques for an account payable entered on books as $240.90 but drawn and paid by bank as $419.00 Computed balance Unreconciled difference Balance per bank (checked to confirmation) $2 267.75 400.00 178.10 (2 945.85) 17 196.76 (200.00) 16 996.76