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Anne Teak's Knick Knack Store received a bank statement for the month ending January 31, which showed an ending balance of $9,660. The company's Cash
Anne Teak's Knick Knack Store received a bank statement for the month ending January 31, which showed an ending balance of $9,660. The company's Cash account in the general ledger showed a balance of $8,011 as of January 31 Other information that may be relevant in preparing a bank reconciliation as of January 31 is as follows: Checks which were written in January but still had not been presented to the bank for payment at January 31, amounted to $1,225. There were no other checks from prior months which had not been presented to the bank for payment. .A check written by Anne Teak's Knick Knack Store, and correctly paid by the bank for $1,470, was incorrectly recorded in the cash payments journal as $1,381. The check was a payment on an account to a vendor Anne Teak's Knick Knack Store recorded cash receipts of $1,246 on January 31, but this amount does not yet appear on the bank statement. The bank included a credit to the company's bank account for $3,152, which represents a collection of a customer's note receivable by the bank on behalf of Anne Teak's Knick Knack Store. The principa amount of the note was $3,000, while the remainder was interest. The bank charged the company's bank account $25 for service charges for the month of January The bank returned an NSF check from a customer of Anne Teak's Knick Knack Store for $635. The check had been received from a customer for its payment of its outstanding account. The bank cleared a check for $733 against Anne Teak's Knick Knack Store's bank account that actually should have been cleared against another bank customer's account (i.e., it was not a check written by Anne Teak's Knick Knack Store.) 1. Prepare a properly-formatted bank reconciliation for Anne Teak's Knick Knack Store as of January 31. Since you are not able to present the bank reconciliation side-by-side, you may list the Bank side first, followed by the Book side. (6 points) 2. What journal entries are necessary to correct the books for Anne Teak's Knick Knack Store as of January 31? (2 points) SPECIFIC INSTRUCTIONS: You must show all of your work for each part of this question. If you do not show your work, you will not receive any points for that part of the question, even if you have the correct
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