Question
Cullumber Lake Boat Company's bank statement for the month of September 2024 showed a balance per bank of $7,000. The company's Cash account in the
Cullumber Lake Boat Company's bank statement for the month of September 2024 showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $5.300 at September 30. Other information is as follows:
1. Cash receipts for September 30 recorded on the company's books were $5,100 but this amount does not appear on the bank statement.
2. The bank statement shows a debit memorandum for $43 for cheque printing charges.
3. Cheque no. 119 payable to Oriole Company was recorded in the general journal and cleared the bank for $326. A review of the Accounts Payable subsidiary ledger shows a $78 credit balance in the account of Oriole Company and that the payment to it should have been for $404.
4. The total amount of cheques still outstanding at September 30 amounted to $6,169.
5. Cheque No. 138 was correctly written and paid by the bank for $606. The cash payment journal reflects an entry for cheque no. 138 as a debit to Accounts Payable and a credit to Cash for $660.
6. The bank returned an NSF cheque from a customer for $690.
7. The bank included a credit memorandum for $1,310 which represents an EFT collection of a customer's account.
Prepare a bank reconciliation for Cullumber Lake Boat Company at September 30, 2024.
Prepare any journal entries necessary as a result of the bank reconciliation.
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