On August 31, 2024, Blossom Company had a cash balance per its books of $27,530. The...
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On August 31, 2024, Blossom Company had a cash balance per its books of $27,530. The bank statement on that date showed a balance of $17,230. A comparison of the bank statement with the Cash account revealed the following. 1.The August 31 deposit of $ 17,740 was not included on the August bank statement. 2.The bank statement shows that Blossom received EFT deposits from customers on account totalling $2,250 in August. Blossom has not recorded any of these amounts. 3.Cheque #673 for $1,470 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,130, and #712 for $2,240. 4.The bank statement showed on August 29 an NSF charge of $618 for a cheque issued by R. Allen, a customer, in payment of their account. This amount included an $8 service charge by Blossom's bank. The company's policy is to pass on all NSF service charges to the customer. 5.Bank service charges of $23 were included on the August statement. 6.The bank recorded cheque # 705 for $112 as $ 121. The cheque had been issued to pay for a building repair. Blossom had correctly recorded the cheque. Q1.Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) Q2. Prepare the necessary entries required by the reconciliation on aug 31. On August 31, 2024, Blossom Company had a cash balance per its books of $27,530. The bank statement on that date showed a balance of $17,230. A comparison of the bank statement with the Cash account revealed the following. 1.The August 31 deposit of $ 17,740 was not included on the August bank statement. 2.The bank statement shows that Blossom received EFT deposits from customers on account totalling $2,250 in August. Blossom has not recorded any of these amounts. 3.Cheque #673 for $1,470 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,130, and #712 for $2,240. 4.The bank statement showed on August 29 an NSF charge of $618 for a cheque issued by R. Allen, a customer, in payment of their account. This amount included an $8 service charge by Blossom's bank. The company's policy is to pass on all NSF service charges to the customer. 5.Bank service charges of $23 were included on the August statement. 6.The bank recorded cheque # 705 for $112 as $ 121. The cheque had been issued to pay for a building repair. Blossom had correctly recorded the cheque. Q1.Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) Q2. Prepare the necessary entries required by the reconciliation on aug 31.
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