Bank Reconciliation

P8-4B The cash receipts and the cash payments of Ace Hardware for January 2020 are as follows: Jan. 3 Cash Receipts Date Cash Debit $20,988 8 1,480 10 1,980 16 7,788 22 20,736 29 2,404 31 1,428 Total $56,804 Cash Payments Cheque No. Cash Credit 311 $ 3,672 312 1,668 313 12,562 314 2,584 315 8,588 316 3,900 317 1,304 318 6,268 319 800 320 12,664 Total $54,010 Aa 12:57 PM 12/8/202 Pr. The Cash account of Ace Hardware shows a balance of $39,478 at January 31, 2020. Ace Hardware received the following bank statement on January 31, 2020: BANK STATEMENT FOR JANUARY 2020 Withdrawal Deposits Bate Jan01 Jan01 1,052 20,988 Jan04 Jan07 3,672 1,480 1,980 Jan09 Jan12 Description Balance Forward EFT Dividend Collection Deposit Chq#00311 Deposit Deposit Chq#00313 NSF Cheque Cha#00312 Deposit Chqw00314 EFT insurance Bank Collection Deposit Balance 36,684 37,736 58,724 55,052 56,532 58,512 46,076 42,620 40,952 48,740 12,436 3,456 1.668 7,788 Jan13 Jan14 Jan 15 Jan 17 Jan18 Jan21 Jan 22 46, 156 2,584 1.316 12,744 20,736 44,840 57,584 78,320 lan23 an 16 12 ARR F PI PS 127 BANK STATEMENT FOR JANUARY 2020 Jano1 Jan01 1,052 20,988 Jan04 3,672 Jan07 Jan09 1,480 1,980 Jan12 Balance Forward EFT Dividend Collection Deposit Chqi00311 Deposit Deposit Chq#00313 NSF Cheque Chq#00312 Deposit Chq#00314 EFT Insurance Bank Collection Deposit Chq#00315 Chq#00316 Service Charge 12,436 3,456 1,668 Jan13 Jan14 36,684 37,736 58,724 55,052 56,532 58,512 46,076 42,620 40,952 48,740 46,156 44,840 57,584 78,320 69,732 Jan15 7,788 Jan 17 Jan18 2,584 1,316 Jan21 Jan22 12,744 20,736 Jan23 8,588 3,900 40 Jan 26 Jan 30 Jan31 65,832 65,792 37,660 66,768 Additional data for the bank reconciliation: 12 12 PE Ps P8-4B The cash receipts and the cash payments of Ace Hardware for January 2020 are as follows: The Cash account of Ace Hardware shows a balance of $39,478 at January 31, 2020. Ace Hardware received the following bank statement on January 31, 2020: Additional data for the bank reconciliation: The EFT deposit was a receipt of monthly rent. The EFT debit was payment of monthly insurance. The NSF cheque was received from A. Levine. The $12,744 bank collection of a note receivable on January 22 included $200 interest revenue. The correct amount of cheque number 313, a payment on account, is $12,436. (Ace Hardware's accountant mistakenly recorded the cheque for $12,562.) Required Prepare the Ace Hardware bank reconciliation at January 31, 2020. Describe how a bank account and the bank reconciliation help Ace Hardware's owner control the business's cash. How would you handle items that were outstanding (bank side) from the previous month's bank reconciliation? 3 Using the bank reconciliation as a control device