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A & R Problem 7-2 Your assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing
A & R Problem 7-2 Your assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing a proper reconciliation falls upon you. Brandon Company Bank Reconciliation May 31, 2020 $ 9,530 Balance per books May 31 Add: Electronic Fund Transfer Deposit in transit $1,078 2,473 3,551 $13,081 $ 16 512 1,818 Deduct: Bank charges NSF cheque, Rhonda Teal Outstanding cheques Error in cheque #78: correctly issued and processed by the bank for $774, but incorrectly recorded in the books as $732 (Accounts Payable-Delta Co.) Indicated bank balance Balance per bank statement Discrepancy 42 2,388 $10,693 9,383 $ 1,310 Required: 1. Prepare a proper bank reconciliation showing the true Cash balance. BRANDON COMPANY Bank Reconciliation May 31, 2020 Company's Books Bank Statement Balance per books Balance per bank Add: Add: $ 0 $ 0 Deduct: Deduct: $ $ 0 Adjusted book balance Adjusted bank balance 2. Prepare the necessary journal entries. View transaction list Journal entry worksheet 1 2 Record to collection of EFT. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record entry Clear entry View general iournal 2. Prepare the necessary journal entries. View transaction list Journal entry worksheet 1 2 Record to error, bank service charges, and NSF cheque. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record entry Clear entre View.general lournal
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