Question
A bank statement received by Tasker Ltd for the month of January 2023 showed a credit balance of $5,800. The company's Cash at Bank balance
A bank statement received by Tasker Ltd for the month of January 2023 showed a credit balance of $5,800. The company's Cash at Bank balance as per company records had a debit balance of $4,885. The following were discovered as the reasons for the discrepancy between the two balances:
1. Outstanding EFTs at 31 January totalled $5,100.
2. The bank statement included a debit entry of $95 for the annual bank service fee.
3. On 31 January, receipts deposited amounting to $6,420 are still outstanding with the bank.
4. On 25 January Tasker Ltd authorised an EFT (Ref no. 206) for $560 for the payment of rent. The EFT, which was processed by the bank in January was incorrectly journalised and posted by Tasker Ltd for $650.
5. Note receivable of $2,100 was collected by the bank for Tasker Ltd on 31 January plus $140 interest. No interest has been accrued on the note.
Required
a. Prepare a bank reconciliation at 31 January 2023 based on the provided information.
b. Prepare journal to record the necessary adjusting entries at 31 January 2023
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