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AP6-5 (Preparation of bank reconciliation) Kinte Products Limited had a balarice in its cash account of S38,755 n October 31, 2016. This included S2,650 of
AP6-5 (Preparation of bank reconciliation) Kinte Products Limited had a balarice in its cash account of S38,755 n October 31, 2016. This included S2,650 of cash receipts from October 31, which had nol yet been deposiled in the bank. On the same dale, its bamk account had a balance of $42,301. Comparing the bank statement with the company's records indicated that the following cheques were outstanding on Octoher 31 #1224 #1230 #1232 si,991 1,336 2,286 S5,613 The ollowing were shown on the bank staternent and nol yet recorded by the company: $376 deducted for a custorner's cheque that was returned to Kinte Products marked NSF $420 added as a result of the direct deposit of an income tax refund from the Canada Revenue Agency $1,200 addod as a result of a note collocted by the bank and deposited in thc company's account, reprcsenting $1,000 of principal and $200 of interest $34 deducted for scrvicc charges for the mouth While preparing the data for its hank reconciliation, the company discovered that it had made an error in recording one of its deposits for cash sales during the month. The actual amount deposited was $2,282, but Kinte Products had recorded it as S2,882. The hank had also made an error in recording one of the company's cheques that was a payment to a supplier on account. The cheque had been issued in the amount of $336, hut the bank processed it as S363. Required a Prcparc a bank rcconciliation for Kinte Products Limited as at Octobcr 31,20 b. Prepare any journal cntrics requirod to adjust thc cash account as at October 31, 2016
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