According to the cash book of Reggie Bunker, he has an overdrawn balance of $7,600 on...
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According to the cash book of Reggie Bunker, he has an overdrawn balance of $7,600 on June 30, 2021, but this is not borne out by the bank statement of the same date which had a balance of $6,530 overdrawn. An investigation into the difference yields the following information: a standing order for a charitable subscription of $800 had been paid by the bank on June 29, 2021 but no entry has been 1) made to the cashbook 2) a cheque paid for advertising on June 10 for $3,580 had been entered in the cashbook as $5,380 3) cheques for $17,370 sent to accounts payable on June 30 were not paid by the bank until July 5, 2021 4) cheques received from customers amounting to $12,800 were paid into the bank on 30 June 2021 but were not credited by the bank until July 1, 2021 5) on June 20, 2021 a cheque for $2,100 was debited in the account of Reggie Bunker, in error by the bank 6) bank charges of $2,400 were not recorded in the cashbook 7) bank interest of $300 has been entered on the bank statement on July 3 but was not included on the cashbook Required: a) Prepare the updated cash book (use appropriate headings) (4 marks) b) Prepare the bank reconciliation statement (use appropriate headings) (6 marks) According to the cash book of Reggie Bunker, he has an overdrawn balance of $7,600 on June 30, 2021, but this is not borne out by the bank statement of the same date which had a balance of $6,530 overdrawn. An investigation into the difference yields the following information: a standing order for a charitable subscription of $800 had been paid by the bank on June 29, 2021 but no entry has been 1) made to the cashbook 2) a cheque paid for advertising on June 10 for $3,580 had been entered in the cashbook as $5,380 3) cheques for $17,370 sent to accounts payable on June 30 were not paid by the bank until July 5, 2021 4) cheques received from customers amounting to $12,800 were paid into the bank on 30 June 2021 but were not credited by the bank until July 1, 2021 5) on June 20, 2021 a cheque for $2,100 was debited in the account of Reggie Bunker, in error by the bank 6) bank charges of $2,400 were not recorded in the cashbook 7) bank interest of $300 has been entered on the bank statement on July 3 but was not included on the cashbook Required: a) Prepare the updated cash book (use appropriate headings) (4 marks) b) Prepare the bank reconciliation statement (use appropriate headings) (6 marks)
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