You are a college student and have just been hired to work part-time in the accounting department

Question:

You are a college student and have just been hired to work part-time in the accounting department of Candy?s Cleaning Services. The person you are replacing had difficulty preparing the bank reconciliation for April 30, which is shown below.

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In comparing the bank reconciliation to the Cash account in the general ledger, you notice a problem. You investigate further and come up with some additional information as follows:

a. The Cash account in the general ledger showed the following:

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b. The error in cheque #93, for Utilities Expense, resulted from the bank incorrectly debiting our account for $99; the correct amount entered in the accounting records is $199.

c. The bank statement showed interest expense of $47; there was no other interest.

d. The bank debited our account for cheque #879 written by Candy?s Hair Salon.

e. Cheque #86 for $14,000 listed as outstanding on last month?s bank reconciliation was not returned with the April 30 bank statement.

Required

1. Prepare a corrected bank reconciliation for April 30, 2020.

2. Record the journal entries resulting from the corrected bank reconciliation.

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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