The following information was available to reconcile Holiday Handicrafts’ general ledger balance and the bank statement balance as of December 31, 2015.
a. According to the accounting record, the December 31, 2015 cash balance was $7,063.50, and the bank statement balance for that date was $1,832.50.
b. Cheque 124 for $178 and Cheque 129 for $200, were both written and entered in the accounting records in December. These were not among the cashed cheques. Two cheques, 117 for $587 and 119 for $95, were outstanding on the previous November 30 bank reconciliation. Cheque 119 was returned with the December cashed cheques, but cheque 117 was not, it therefore was still outstanding.
c. When the December cheques were compared with entries in the accounting records, it was found that cheque 121, in payment for office supplies, had been correctly written for $654 but was incorrectly entered in the accounting record as $645.
d. Three debit memoranda were included with the bank statement. One of the debit memoranda was for an NSF cheque from J. Warren in the amount of $205. The bank charged a $10 fee for the NSF cheque. The last memo was for $72 to cover interest on an outstanding bank loan.
On December 31, 2015, the cash of $5,900 from the cashier was deposited to Holiday Handicraft’s bank account after banking hours through the ATM machine. The deposit was not on the bank statement.

 

Transcribed Image Text:

Bank Statement Balance Add: Deduct Outstanding Cheques Adjusted Bank Balance General Ledger Cash Balance Add: Deduct: BANK RECONCILIATION AS OF Adjusted General Ledger Cash Balance - Bank Statement Balance Add: Deduct Outstanding Cheques Adjusted Bank Balance General Ledger Cash Balance Add: Deduct: BANK RECONCILIATION AS OF Adjusted General Ledger Cash Balance -

Answer rating: 100% (QA)

Answer Table showing the bank reconciliation statement Holiday Handicrafts Bank Reconciliation State... View the full answer