Consider the following bank statement and general ledger for Kaelen’s Spa. 

Additional information: 

1. On August 19, Kaelen’s Spa purchased $575 worth of nail polish and supplies from Outer Beauty Inc. 

2. The spa’s cheque numbers are always three digits in length. 

Required 

Prepare a bank reconciliation for Kaelen’s Spa on August 31, 2020, and prepare the necessary journal entries

Transcribed Image Text:

BANK STATEMENT Date Explanation Debit Credit Balance Opening balance Cheque No. 301 10 16,000 15,000 13,000 12,200 12,700 Aug. 1 1,000 Cheque No. 302 EFT-monthly rent Corsen Parker 2,000 10 800 11 500 NSF cheque NSF charge Cheque No. 303 21 11 500 12,200 12,190 11,615 8,615 8,560 8,590 11 10 14 575 Cheque No. 1234 30 3,000 Service charges 55 30 Interest on bank account 30 GENERAL LEDGER-BANK Date Explanation Debit Credit Balance Opening balance Jaiden's Supplies-Cheque No. 301 Monique's Office-Cheque No. 302 Aug. 1 16,000 1,000 2,000 3 15,000 13,000 4 11 Corsen Parker 500 13,500 19 Outer Beauty Inc.-Cheque No. 303 Polish Care Ltd.-Cheque No. 304 Deposit 1,575 2,090 11,925 9,835 19,835 23 31 10,000