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2 question

3. question

John Snow's chequebook lists the following: Cheque # Item Cheque Deposit Date Nov 1 4 Balance $505 466 582 622 $39 9 $116 624 Horizon Utility Dividends Canadian Tire Petro-Canada Cash Faith of the Seven Church Affordable Housing Paycheque 26 406 627 275 131 877 30 746 The November bank statement shows: $505 Balance Add deposits Deduct cheques Amount $39 No. 622 623 624 43 625 50 Other charges: NSF cheque Service charge Balance $8 12 $384 1. Prepare John Snow's bank reconciliation at November 30th. Question 2 Digital Solutions Inc is preparing its cash collection summary for 2018. Digital ended 2017 with cash of $81 million, and managers need to keep a cash balance of at least $75 million for operations. Collection from customers are expected to total $11,284 million during 2018, and payments for the cost of services should reach $6,166 million. Operating expense payments are budgeted at $2,543. During 2018, Digital expects to invest $1,825 million in new equipment and sell older assets for $115 million. Debt payments scheduled for 2018 will total $597 million. The company forecasts net income of $890 million for 2018 and plans to pay dividends of $338 million. 1. Prepare Digital Solutions cash balance for 2018. Will the cash receipts and payments leave Digital with the desired ending cash balance of $75 million, or will the company need additional financing? If it does, how much will it need? Hint: cash collections - cash payments = ending cash - desired balance = financing (if needed The October 31 bank statement of Spooky Halloween Costumes Ltd. (SHC) has just arrived from TD Bank. To prepare the SHC bank reconciliation, you gather the following data: SHC's Cash account shows a balance of $2,256.14 on October 31. The October 31 bank balance is $4,023.05. The bank statement shows that SHC earned $38.19 of interest on its bank balance during October. This amount was added to SHC's bank balance. SHC pays utilities of $250 and insurance of $100 by EFT. The following SHC cheques did not clear the bank by October 31: Cheque # 237 298 Amount $46.10 141.00 578.05 11.87 291 292 294 295 296 609.51 8.88 101.63 The bank statement includes a donation of $850, electronically deposited to the bank for SHC. The bank statement lists a $10.50 bank service charge. On October 31, the SHC treasurer deposited $16.15, which will appear on the November bank statement. The bank statement includes a $300 deposit that SHC did not make. The bank added $300 to SHC's account for another company's deposit. The bank statement includes two charges for returned cheques from donors. One is a $395 cheque received from a donor with the imprint "Unauthorized Signature." The other is a nonsufficient funds cheque in the amount of $146.67 received from a client. 1. Prepare the bank reconciliation for SHC. 2. Journalize the October 31 transactions needed to update SHC's Cash account. You do not need to include an explanation for each entry