: Bank Statement Date Particulars Debits Credits Balance 2004 Aug-01 $ 8 860 Cr 2 295 $840 $1 180 9 200 Cr 3 296 700 976 9 476 Cr 5 297 960 712 9 228 Cr 8 300 2 248 1 080 8 060 Cr 12 298 336 7 724 Cr 301 388 14 299 168 508 7 336 Cr 17 303 540 1 020 7 676 Cr 21 1 460 8 156 Cr 27 304 1 336 500 9 616 Cr 29 980 8 780 Cr 30 Ret Cheque 500 9 760 Cr Direct Deposit 1 988 9 260 Cr Account Fees 16 11 248 Cr 11 232 Cr TOTAL DEBITS $8032 TOTAL CREDITS $10 404 Cash Receipts Journal Cash Payments Journal Date Cash at bank Cheque no. Cash at bank Perfect Cover Insurance Brokers Aug 1 $1 180 296 $700 Bank Reconciliation Statement 2 976 297 960 as at 31 July 5 712 298 336 Balance as per bank statement $8860 Cr 8 1 080 299 168 Less: 13 508 300 2 248 Unpresented No. 290 $544 17 1 020 301 388 cheques: 295 840 1384 20 1 460 302 496 26 500 303 740 Balance as per Cash at Bank 28 980 304 1 336 account $7476 Dr 30 1 140 305 420 TOTAL $9 556 TOTAL $7 792 Additional information reveals that Cheque 303 is correct in the bank statement but was incorrectly recorded in the Cash Payments Journal. REQUIRED: 1. Using all of the information above calculate the Cash at Bank balance as at August 31 2004. [6 marks] 2. Complete the bank reconciliation for Perfect Cover Insurance Brokers for August 2004. [5 marks] 3. Explain the importance of determining if the bank statement shows a debit or credit balance at the end of the month when doing a bank reconciliation. [4 marks]