Bank reconciliations and cash

The bank reconciliation for Party Supplies at 31 July 2018 is shown below:

The August 2018 bank statement appeared as follows:

Party Supplies Ltd's accounting records for August 2018 showed the following:

The current balance in the bank ledger account (after the above receipts and payments have been entered) is: $17,245.00 + $18,874 deposits - $16,754.50 withdrawals = $19,364.50.

The companys bookkeeper has come to you for help, as she is having trouble reconciling the bank account at 31 August 2018.

Required:

i) Prepare the bank reconciliation for Party Supplies Ltd at 31 August 2018.

ii) Prepare the journal entries to correct any errors made by Party Supplies Ltd, and to record transactions that have not yet been entered into the companys accounting records. (Note: The correction of any errors relating to the recording of cheques should be made to Accounts payable. The correction of any errors relating to deposits (other than interest received) should be made to Accounts receivable.)

iii) Prepare the bank ledger account (using the T-Account format) for August 2018, in order to determine the balance in the account after the above journal entries have been recorded and posted

Party Supplies Ltd Bank reconcilition as at 31 July 2018 Cash balance as per bank statement Add: outstanding deposits $17,900.00 $100.00 $18,000.00 Less: Unpresented cheques - Chq 126 - Chq 130 - Chq 131 Cheque amount $55.00 $200.00 $500.00 $755.00 Cash balance as per ledger $17245.00 Bank statement for August 2018: Withdrawal Date Description osit Balance 1/08/2018 Opening balance $17,900.00 $18,000.00 $18,300.00 55.00$18,245.00 $17,745.00 $19,925.00 $19,495.00 $15,695.00 $21,495.00 $20,835.00 $22,167.00 $24,303.00 $23,803.00 $27,003.00 $27,553.00 $30,753.00 $27,613.00 $28,678.00 $28,478.00 $29,678.00 $29,653.00 $29,667.68 $29,667.68 1/08/2018 Deposit 2/08/2018 Deposit 2/08/2018 Cheque 126 2/08/2018 Cheque 131 3/08/2018 Deposit 3/08/2018 Cheque 133 6/08/2018 Cheque 134 9/08/2018 Deposit 9/08/2018 Cheque 136 12/08/2018 Deposit 14/08/2018 Deposit 14/08/2018 Cheque 137 16/08/2018 Deposit 19/08/2018 Deposit 25/08/2018 Deposit 25/08/2018 Cheque 139 28/08/2018 Deposit 29/08/2018 Cheque 140 30/08/2018 Deposit 31/08/2018 Bank fees 31/08/2018 Interest 31/08/2018 Closing balance 100.00 300.00 500.00 2,180.00 430.00 3,800.00 5,800.00 660.00 1,332.00 2,136.00 500.00 3,200.00 550.00 3,200.00 3,140.00 1,065.00 200.00 1,200.00 25.00 14.68 Cash payments journal: Cash receipts iournal: Amount banked Chg number Date 1/08/2018 2/08/2018 2/08/2018 4/08/2018 8/08/2018 10/08/2018 17/08/2018 22/08/2018 24/08/2018 31/08/2018 Amount Date $195.00 $340.00 132 133 134 135 136 137 138 139 141 142 300.00 2/08/2018 $2,180.00 8/08/2018 $5,880.00 11/08/2018 $1,322.00 13/08/2018 $2,136.00 24/08/2018 $3,200.00 27/08/2018 $1,056.00 29/08/2018 $1,200.00 31/08/2018 $1,600.00 1/08/2018 $3,800 $511.00 $660.00 $5,000 $870.50 $3,140 $1,266 $972.00 $16,754.50 $18,874.00