1. Prepare all journal entries that would be required by the bank reconciliation. Prepare a general journal.

Excel communications had a computer failure on Febuary 1, 2014, which resulted in the loss of data, including the balance of its Cash account and its bank reconciliation from January 31, 2014. The accountant, Brad Eyers, has been able to obtain the following information from the records of the company and its bank:

A. An examination showed that two cheques (#461 for $645 and #492 for $225) had not been cashed as of February, 1. Eyers recalled that there was only one deposit in transit on the January 31 bank reconciliation, but was unable to recall the amount.

B. The cash receipts and cash payments journal contained the following entries for February 2014:

Cash Receipts Amounts Cheque # Amount

$876 499 $678

$1230 500 $651

$1545 501 $2578.50

$612 502 $846

$2460 503 $327

504 $820

505 void

506 $314

507 $543

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6723 $6757.50

C.

Date	Cheques and Other Debits	Deposits and Other Credits	Deposits and Other Credits	Balance
Feb. 1	#500		660	3579
3	#492			3354
5	#501			775.50
8			876	1651.50
16	#499		585	1558.50
17	EFT			1116
19		EFT	720	1836
21	#503		1230	2739
22	#504	EFT	336.50	2215.50
24		EFT	471	2686.50
26	NSF		1545	2439
27	SC			2401.50
27	#507		612	2470.50

D. The deposit made on February 16 was for the collection of a note receivable ($540) plus interest

E. The EFTs had not yet been recorded by Excel Communications since the bank statement was the first notification of them.

The February 17 EFT was for the monthly payment on an insurance policy for Excel Communications.

The February 19 and 24 EFTs were collections on accounts receivable

The February 22 EFT was in error the transfer should have been to Accel Communications

F. The NSF cheque on February 26 was received from a customer as payment of $1792.50 for installation of a satellite purchased from Excel.

G. Cheque #504 was correctly written for $860 for the purchase of inventory (assume perpetual), but incorrectly recorded by the cash payments clerk.

General Journal
DATE 2014		ACCOUNT TITLES AND EXPLANATIONS	POST. REF.	DEBIT	CREDIT