Your bank manager has requested an explanation regarding your bank account. He has advised you are...

 

Transcribed Image Text:

Your bank manager has requested an explanation regarding your bank account. He has advised you are overdraft by $120,000 as of today - January 31, 2023 and wants the negative balance covered immediately. You respond that your general ledger shows a cash balance of $320,000. Knowing that the only way to solve the problem is to prepare a bank account reconciliation as at January 31, 2023 you have your staff find and present the following information for analysis: Customer lockbox cash received by bank January 30 not in company records - $88,000 Cheques processed by bank and company during month - $437,000 Cheques issued by company not yet cleared bank - $398,000 Bank loan interest processed January 28 by bank not in company records - $19,000 Company cash transfer January 30 processed by bank on February 1 - $265,000 Company cash deposit made on last day after banking hours - $315,000 Deposits processed by company and bank - $545,000 Loan payment processed by bank January 27 - $383,000 New loan payment starting March 2023 - $200,000 January 31 EFT supplier payments not processed by bank until February 1 - $56,000 Prepare the detailed bank reconciliation to advise the bank as to what the "actual" balance will be. Your bank manager has requested an explanation regarding your bank account. He has advised you are overdraft by $120,000 as of today - January 31, 2023 and wants the negative balance covered immediately. You respond that your general ledger shows a cash balance of $320,000. Knowing that the only way to solve the problem is to prepare a bank account reconciliation as at January 31, 2023 you have your staff find and present the following information for analysis: Customer lockbox cash received by bank January 30 not in company records - $88,000 Cheques processed by bank and company during month - $437,000 Cheques issued by company not yet cleared bank - $398,000 Bank loan interest processed January 28 by bank not in company records - $19,000 Company cash transfer January 30 processed by bank on February 1 - $265,000 Company cash deposit made on last day after banking hours - $315,000 Deposits processed by company and bank - $545,000 Loan payment processed by bank January 27 - $383,000 New loan payment starting March 2023 - $200,000 January 31 EFT supplier payments not processed by bank until February 1 - $56,000 Prepare the detailed bank reconciliation to advise the bank as to what the "actual" balance will be.

Answer rating: 100% (QA)

Bank Account Reconciliation as of January 31 2023 Balance per bank statement 120000 Add Customer loc... View the full answer