The October 31, 2023, bank statement of Jazzera Distributors has just arrived. To prepare Jazzera Distributors’ bank reconciliation, you gather the following data:

a. The October 31 bank balance is $38,212.

b. The bank statement includes two deductions for NSF cheques from customers. One was for $168 and the other was for $370.

c. The following Jazzera Distributors’ cheques are outstanding at October 31:

d. A few customers pay their accounts by EFT. The October bank statement lists a $12,732 deposit against customer accounts.

e. The bank statement includes two special deposits: $1,766, which is the amount of GST refund (GST Receivable) the bank received on behalf of Jazzera Distributors, and $160, the interest revenue Jazzera earned on its bank balance during October.

f. Jazzera’s owner wrote a cheque for $818 for the purchase of auction equipment items. The cheque was processed by the bank, but the owner did not notify his accounting staff before the end of the month, so the cheque was not recorded.

g. On October 31, the company deposited $932, but this deposit does not appear on the bank statement.

h. The bank statement includes an $819 deduction for a cheque drawn by Jazz Communications. Jazzera promptly notified the bank of its error.

i. The bank statement lists a $132 subtraction for the bank service charge.

j. Jazzera’s Cash account shows a balance of $23,073 on October 31.

Required

1. Prepare the bank reconciliation for Jazzera Distributors at October 31, 2023.

2. Record in general journal form the entries necessary to bring the book balance of Cash into agreement with the adjusted book balance on the reconciliation. Include an explanation for each entry.

Transcribed Image Text:

Cheque No. 312 522 534 539 540 541 Amount $1,098 1,086 114 112 416 894