Information follows for Quartz Industries Ltd.:

Additional information:

1. One June 26 transaction was for bank service charges.

2. One June 30 transaction was a bank debit memo for $1,050.00 for a customer?s cheque returned and marked NSF (included with the June bank statement).

3. Cash received on June 30 and put in the bank?s night deposit box on the evening of June 30 was recorded by the bank in the general chequing account on July 3 for the amount of $4,607.96.

Instructions

a. Audit & Assurance Prepare a bank reconciliation to the correct balance as at June 30, 2020, for Quartz Industries.

b. Enabling Competencies Discuss the importance of the bank reconciliation to control cash.

Transcribed Image Text:

Quartz Industries Ltd. Bank Reconciliation May 31, 2020 Balance per bank statement Less: Outstanding cheques $30,928.46 $2,125.00 No. 6124 No. 6138 932.65 No. 6139 960.57 No. 6140 1,420.00 5,438.22 25,490.24 Add deposit in transit 4,710.56 Balance per books (correct balance) $30,200.80 Cheque Register-June Invoice Amount Discount Cash Date Payee No. $ 237.50 $ 237.50 Bren Mfg. Stempy Mfg. Regent Co., Inc. Bren Mfg. Petty Cash Pretty Babies Photo Hey Dude Publishing Payroll Account Dragon Tools, Inc. Be Smart Construction June 1 6141 $ 9.15 6142 915.00 905.85 6143 122.90 2.45 120.45 6144 306.40 306.40 10 6145 89.93 89.93 17 6146 706.00 14.12 691.88 6147 447.50 22 447.50 6148 23 4,130.00 4,130.00 25 6149 390.75 3.91 386.84 28 6150 2,250.00 2,250.00 750.00 29 MMT, Inc. 6151 750.00 Lasso Co. 30 6152 400.00 8.00 392.00 $10,745.98 $37.63 $10,708.35 Provincial Bank Bank Statement General Chequing Account of Quartz Industries–June 2020 Debits Credits Balance Date $30,928.46 $ 905.85 $2,125.00 $ 237.50 $4,710.56 June 32,370.67 12 932.65 120.45 1,507.06 32,824.63 23 1,420.00 447.50 306.40 1,458.55 32,109.28 4,130.00 11.05 26 27,968.23 30 89.93 2,250.00 1,050.00 4,157.48 28,735.78