(Suggested time: 12-15 minutes) Carey's caf Ltd. had the following information regarding its bank transactions for the...
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(Suggested time: 12-15 minutes) | ||||
Carey's caf Ltd. had the following information regarding its bank transactions for the month of April 2023: | ||||
Cash balance per bank statement April 2023..............................$11,400 | ||||
Cash balance per books ................................................................... 2, 805 | ||||
1 | Cheques written in April but still outstanding, $6,000 | |||
2 | Deposits in transit, $6,100 | |||
3 | A customers cheque for $650 was returned by the bank as NSF. The bank charged $50 processing fee for this transaction. | |||
4 | Cheque #210 for $594 was correctly issued but incorrectly recorded by the cashier as a payment of $549. The cheque was issued for payment of utilities. | |||
5 | Bank service charge for April was $50 | |||
6 | Electronic collections on account totaled $6,690, and have not yet been recorded by the company | |||
7 | The bank mistakenly posted a deposit of $2,800 to Carey's Caf Ltd.'s account instead of Karie's Caf Ltd. | |||
Required: | ||||
a. | Prepare the bank reconciliation statement for Carey's caf Ltd. for the month of April 2023. | |||
b. | Prepare any journal entries required from the reconciliation. | |||
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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