Adams Enterprises began operations on January 2, 2014, depositing $40,000 in the bank. During this first month of business, the following transactions occurred that affected the Cash account in the general ledger:

Shortly after the end of January, the company received its first bank statement:

In preparing to do the bank reconciliation, Adams Enterprises noticed that the $2,000 deposit on January 29 was a bank error and informed the bank. The bank will correct the error on the next bank statement.
Required
Prepare Adams Enterprises' bank reconciliation at January 31, 2014.

Transcribed Image Text:

Date Description Dr Čr $ 40,000 Jan. 2 Deposit Payment, cheque 001 $12,000 Payment, cheque 002 16,000 Cash sales 16,000 15 Payment, cheque 003 10,000 18 Cash sales 12,000 20 Bank loan 100,000 26 Equipment purchase, cheque 004 74,000 17,000 Payment on account, cheque 005 31 Cash sales 25,600 N LO OC Description Withdrawals Deposits Date Balance Balance Forward Jan01 Deposit 40,000 Jan02 40,000 Chq#001 12,000 Jan07 28,000 16,000 Jan09 Deposit Chq#002 44,000 16,000 Jan13 28,000 Jan18 Jan20 Deposit 12,000 40,000 Bank Loan 100,000 140,000 Chq#004 74,000 Jan28 66,000 Jan29 Deposit Service Charge 2,000 68,000 48 Jan31 67,952 Interest 8. Jan31 67,960 102,048 170,008