Question
Broadway Enterprises has received its bank statement as at March 31, 2019 which showed a balance of $15,180. Meanwhile its Cash book balance at March
Broadway Enterprises has received its bank statement as at March 31, 2019 which showed a balance of $15,180. Meanwhile its Cash book balance at March 31, 2019 stood $8,140. In addition, the Accountant of Broadway Enterprises was presented with the following information: 1. Bank charges for the month were shown as $250 as per bank statement. 2. Cheques issued to two creditors-Alloy Limited for $900 (cheque #253) and Ben Lion for $270 (cheque #258) were not presented to the bank and remain outstanding. 3. Ali Brown, a customer deposited a cheque in the amount of $2,500 directly into Broadway Enterprises bank account that was not recorded in the cash book. 4. Proceeds of a matured Note receivable was received by the bank in the amount of $5,800, including interest of $800. 5. A cheque in the amount of $180 received from a customer, Barry Duke was returned by the bank marked as Not Sufficient Funds. 6. The bank erroneously posted a cheque in the amount of $2,000 (cheque #1123) issued by Broadway Limited in Broadway Enterprises account. 7. During the evening of March 31, a deposit of $2,000 was placed in the night deposit box at the bank after closing hours; this is not shown on the bank statement. You are required to:
(a) Prepare the relevant journal entries; and
(b) Prepare the Bank Reconciliation Statement for Broadway Enterprises as at March 31, 2019.
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