(a) Prepare the Bank Reconciliation:

(b) Record the required journal entries to complete the bank reconciliation:

(c ) Most customers of Best Bargain Computer Company use the option to pay for their purchases over 12 equal payments over 1 year. The customers send the cash or cheques each month. The office manager opens the mail each day, makes a bank deposit with the cheques received in the mail that day, and prepares and posts an entry in the accounting records. Is there a control weakness in this scenario? If so, what is it? How can it be remedied?

Speed Running Club has a bank balance of $23,842 on November 30, 2020. The book balance is $26,983.

1. The outstanding cheques from the October bank reconciliation were cheque number 1219 for $500 and cheque number 1218 for $400. Cheque number 1218 remained outstanding on November 30, 2020.

2. A Cash deposit made on November 30 of $12,230 does not appear on the bank statement.

3. The following cheques were outstanding at month end:

Cheque Number .........Amount

328 ...................................$998

329 ...................................$330

330 .................................$2,724

4. One customer cheque was returned for insufficient funds for $433.

5. Two additional items appeared on the bank reconciliation. The company made an EFT payment for Insurance of $275 and the bank took payment for bank fees of $25.

6. The bank collected rent from the company’s concession stand as an EFT receipt for $2,310. The collected $35 for processing this transaction.

7. The bank collected a note receivable on the company’s behalf on November 30 for $1,430 which included $100 of interest revenue.

8. The owner of the company wrote cheque #667 and forgot to record it. The cheque was for $380 for supplies.

9. The bank deposited $2,000 into Speed Runnings bank account. The deposit was actually a deposit for Speed Skating Ltd.

10. The bookkeeper recorded a deposit of $505. The bank correctly recorded the deposit at the correct amount of $550.