Question
Blue Company's bank statement for the month ended January 31 showed a balance per bank of $34,728. The company's Cash balance at January 31 was
Blue Company's bank statement for the month ended January 31 showed a balance per bank of $34,728. The company's Cash balance at January 31 was $16,398. Other information is as follows: 1. Cash receipts for January were $87,679, of which $5.279 was outstanding at January 31. 2. The bank statement shows a debit memorandum for $155 for cheque printing charges. 3. 4. 5. Cheque no. 119 payable to Blossom Company was recorded in the general journal and cleared the bank for $363. A review of the Accounts Payable subsidiary ledger shows a $151 credit balance in the account of Blossom Company and that the payment to it should have been for $514. The total amount of cheques written during January was $75,166, of which $6,019 was outstanding at January 31. Cheque No. 127 was correctly written and paid by the bank for $549. The general journal reflects an entry for cheque no. 127 as a debit to Accounts Payable and a credit to Cash for $594. 6. The bank returned an NSF cheque from a customer for $790. 7. The bank included a credit memorandum for $18,490, which represents an EFT collection of a customer's account. (a) Prepare a bank reconciliation for Blue Company at January 31. (List items that increase balance as per bank & books first.)
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