Bismark's Imports Didier Ovia, owner of Bismark's Imports, was responsible for preparing his company's monthly bank reconciliation. Bismark's General Manager, Mohammad Drogba, had just dropped the July 2022 bank reconciliation onto Ovia's desk (Exhibit 1). Ovia gathered the company's monthly cash receipts and disbursements, as well as a copy of the August 2022 Bank Statement (See Exhibits 2 to 4) and began working. REQUIRED 1. Prepare a bank reconciliation for the month of August 2021. Assume any errors in recording are those of Bismark's Imports. 2. Record, using Journal entries, all correcting entries as a result of the bank reconciliation. Exhibit 1 BANK RECONCILIATION As at July 31, 2022 Balance per company records, July 1, 2022 Add: Cash receipts Less: Cash disbursements Cash balance per company records, July 31, 2022 $23,750.00 $39,330.00 18,700.00 5,050.00 $44,380.00 Less: Bank service charges for $15.00 Add: Interest earned 3.00 -$12.00 Adjusted cash balance per company records, July 31, 2022 $44,368.00 Balance per bank records, July 31, 2022 Less: Outstanding cheques: Cheque #145 Cheque #15 $45,350.00 548 734 Add: Late deposit 300 Adjusted cash balance per bank records, July 31, 2022 $44,368.00 Exhibit 2 CASH DISBURSEMENTS JOURNAL August 2022 CHEQUE DATE ISSUED TO AMOUNT # August 1 57 FRT Ltd. $35.00 4 58 Clarse clocks $83.00 Olson and Twins 5 60 $75.00 partners 9 61 Top United Imports $415.00 11 63 Kim's Misc. $80.00 30 64 LLC Ltd. $340.00 Total $1,028.00 Exhibit 3 CASH RECEIPTS JOURNAL August 2022 RECEIVED FROM AMOUNT CHEQUE DATE # August 2 12 New Age Distributor $44.00 10 26 Drop Ship Inc. $79.00 Magicians Assistant 16 763 $567.00 Inc. 17 534 Purple and White $102.00 19 70 Purple Product Inc. 83.00 Total $875.00 Exhibit 4 BANK STATEMENT For the month ended August 30, 2022 DATE DESCRIPTION WITHDRAWALS DEPOSITS BALANCE August 2 Cheque 57 35.00 $45,315.00 3 548.00 44,767.00 4 44.00 44,811.00 7 Cheque 58 83.00 44,728.00 8 Cheque 60 75.00 44,653.00 10 Cheque 61 415.00 44,238.00 11 79.00 44,317.00 18 120.00 44,437.00 19 Cheque 15 734.00 43,703.00 20 Cheque 63 80.00 43,623.00 22 NSF Fee (Purple 52.00 43,571.00 Rainboots) Automatic 25 Withdrawal 125.00 43,446.00 Insurance 29 Banking Fees 30.00 43,416.00 30 Interest $10.00 43,426.00