Eli Corp. has just received its August 31, 2017 bank statement, which is summarized as follows:

The general ledger Cash account contained the following entries for the month of August:

Deposits in transit at August 31 are $3,800, and cheques outstanding at August 31 total $1,050. Cash currently on hand at August 31 is $310 and there were postdated cheques from customers (for September 1) in the amount of $540. The bookkeeper improperly entered one cheque in the books at $146.50. The cheque was actually written for $164.50 for supplies (expense) and cleared the bank during the month of August.
Instructions:
a) Prepare a bank reconciliation dated August 31, 2017, proceeding to a correct balance.
b) Prepare any entries that are needed to make the books correct and complete.
c) What amount of cash should be reported on the August 31 statement of financial position?

Transcribed Image Text:

Provincial Bank of Manitoba Balance, August 1 Deposits during August Note collected for depositor, including $40 interesS40 Cheques cleared during August Bank service charges Balance, August 31 Disbursements Receipts Balance S9,369 41,569 42.609 8,109 8,089 8,089 $32,200 1,040 $34,500 20 Cash Balance, August 1 Receipts during August 10,050Disbursements in August 35,000 34,903