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Consider the following general ledger and bank statement for Top Salon. Account: Cash GL. No. 101 Date Explanation Debit Credit Balance Sep 1 Opening balance
Consider the following general ledger and bank statement for Top Salon.
| Account: | Cash | GL. No. 101 | |||
| Date | Explanation | Debit | Credit | Balance | |
| Sep 1 | Opening balance | 8,700 | DR | ||
| Sep 3 | Jimmy Supplies-cheque #693 | 400 | 8,300 | DR | |
| Sep 8 | KidKid Supplies-cheque #694 | 880 | 7,420 | DR | |
| Sep 13 | Dez F | 490 | 7,910 | DR | |
| Sep 15 | Vivacious Inc-cheque #695 | 866 | 7,044 | DR | |
| Sep 19 | CiG Ltd-cheque #696 | 840 | 6,204 | DR | |
| Sep 28 | Deposit | 2,600 | 8,804 | DR | |
| Bank Statement | ||||
| Date | Explanation | Withdrawal | Deposit | Balance |
| Sep 1 | Opening balance | 8,700 | ||
| Sep 3 | Cheque #693 | 400 | 8,300 | |
| Sep 8 | Cheque #694 | 880 | 7,420 | |
| Sep 8 | EFT - Monthly Rent | 1,150 | 6,270 | |
| Sep 13 | Dez F | 490 | 6,760 | |
| Sep 13 | NSF cheque | 490 | 6,270 | |
| Sep 13 | NSF charge | 21 | 6,249 | |
| Sep 15 | Cheque #695 | 686 | 5,563 | |
| Sep 21 | Cheque #2217 | 2,300 | 3,263 | |
| Sep 30 | Service charges | 36 | 3,227 | |
| Sep 30 | Interest on bank account | 31 | 3,258 | |
Additional Information 1. On Sep 15, Top Salon purchased $686 worth of salon supplies from Vivacious Inc. 2. The salons cheque numbers are always three-digits in length. Therefore, it did not issue cheque #2217.
Required a) Prepare a bank reconciliation for Top Salon on September 30, 2019. b) Prepare the necessary journal entries.
Do not enter dollar signs or commas in the input boxes. Do not use negative signs. Select the proper order for the headings of the Bank Reconciliation.
| AnswerSeptember 30, 2019Top SalonBank Reconciliation | |||||
| AnswerSeptember 30, 2019Top SalonBank Reconciliation | |||||
| AnswerSeptember 30, 2019Top SalonBank Reconciliation | |||||
| Cash balance per bank statement | Answer | Cash balance per books | Answer | ||
| Add | Add | ||||
| Outstanding deposit | Answer | Interest earned | Answer | ||
| Bank Error | Answer | Answer | Ledger error | Answer | Answer |
| Deduct outstanding cheques | Deduct | ||||
| Cheque #696 | Answer | EFT - Rent | Answer | ||
| NSF Cheque | Answer | ||||
| NSF service charge | Answer | ||||
| Bank service charges | Answer | Answer | |||
| Adjusted bank balance | Answer | Adjusted book balance | Answer | ||
Do not enter dollar signs or commas in the input boxes.
| Date | Account Title and Explanation | Debit | Credit |
| 2019 | |||
| Sep 30 | AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | |
| AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | ||
| Correct error on cheque #695 | |||
| Sep 30 | AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | |
| AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | ||
| Record interest earned for the month of September | |||
| Sep 30 | AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | |
| AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | ||
| Record EFT - monthly rent | |||
| Sep 30 | AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | |
| AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | ||
| Record NSF cheque returned by bank | |||
| Sep 30 | AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | |
| AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | ||
| Record NSF charges from bank | |||
| Sep 30 | AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | |
| AnswerAccounts PayableAccounts ReceivableBank Charges ExpenseCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueRent ExpenseSalaries ExpenseSales RevenueSalon SuppliesUnearned Revenue | Answer | ||
| Record service charges for the month of September |
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