DEMONSTRATION PROBLEM Required Consider the following information and prepare a bank reconciliation, along with any result- ing journal entries, for TJ Company, an online retailer that specializes in digital device acces- sories at April 30, 2017 Analysis Component: Assume that you are the owner of TJ Company and have just read an online article about em- ployee accounting fraud. As a result, you have decided to review the bank reconciliation pre- pared for April 30. You notice that cheque #808 for $850 is not included with the cancelled cheques that are returned by the bank with the bank statement. Your office is small and is managed by one employee, Brent Wicker. When questioned, Brent cannot locate the missing cheque. What do you do, if anything? Explain. REET/Downloads/BRS.pdf The bank reconciliation prepared by TJ Company on March 31, 2017, follows: TI Company Bank Reconciliation March 31, 2017 $7.670 Book balance Bank Statement balance Add: Deposit of March 31 in transk ........... 18.540 1.100 $8.770 Deduct: Outstanding cheques: 0797: #804: Adjusted bank balance $ 60 120 180 18.50 The following bank statement is available for April Te: Tu Com Bank Statement April 30, 2017 Bank of Nova Scotia Cheques/Charges/Debits Deposits/Credits Balance #811 #807 #810 NSF BOB #797 8814 13 04/03 04/07 04/13 04/18 04/23 04/27 04/30 04/30 834 375 208 450 850 60 550 372 04/03 04/07 04/13 04/18 04/23 04/27 04/30 INT 1.100 810 690 680 355 750 620 7,670 7.936 8.371 8.853 9,083 8,588 9278 9,345 ng 47 O i E w TE NE hp 120 X BRS Cemeworklep With Che X Gry for Class VK X + C/USHARPREET/Downloads/RS.pdf 18. Company $ April 30, 2017 Bank of Nova Scotia Che/Chery/Debita Deposlta/Credits Balance 7,679 7.936 Ra 8811 04/03 0807 04/07 OR10 04/13 NSF 04/18 BOB 04/23 6797 04/27 1814 04/30 813 04/30 80 04/30 SC 04/30 NSF - Not Sufi 834 375 208 450 850 60 550 372 124 32 04/03 04/07 04/13 04/18 04/23 04/27 04/30 INT 1.100 810 690 680 355 750 620 47 8.371 8.853 4083 8,588 9.278 9,348 4,023 8,899 8,867 04/30 GET interest A list of deposits made and cheques written during April, taken from the cash receipes journal and cash disbursements journal, is shown below: Cheques Written Deposits Made April 7 13 18 23 27 30 30 Total April Cash Recipes 810 640 680 385 750 620 770 14 675 No. BOT BON 804 810 811 812 13 $ 375 850 124 200 348 207 372 350 405 602 14041 814 RIS 816 Total April Cash Disements ORI > e E 3 w e hp Q 10 - + 144 pit se delete home 4 95 5 & 6 ( 7 8. 9 backspace Tum lock R T Y U O P o to X Pod Attendum ERS X Cetak With Che X G Arany for VK X + Tile/Users/HARPREET/Download+ General Ledger Cash Account: Explanation Cash Debit PR Acct. No. 101 Balance Credit Date 2017 March 31 April 30 30 Balance CR12 4,675 8.540 13,265 9.224 In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #811, for delivery expense, was recorded in the cash disbursements journal incorrectly as $348. The NSF cheque for $450 was that of customer A. Hussain, deposited in April. Planning the solution Set up a schedule like Exhibit 7.10 with a bank side and a book side for the reconciliation. Follow the nine steps used in the chapter to prepare the bank reconciliation For every reconelling item on the book side, prepare an entry, if required. Prepare an answer to the analysis component, o > E CE 3 9 19 + 4+ Y delete $ TORTE % & 4 5 6 7 00 9 0 backspace R T Y U O a DEMONSTRATION PROBLEM Required Consider the following information and prepare a bank reconciliation, along with any result- ing journal entries, for TJ Company, an online retailer that specializes in digital device acces- sories at April 30, 2017 Analysis Component: Assume that you are the owner of TJ Company and have just read an online article about em- ployee accounting fraud. As a result, you have decided to review the bank reconciliation pre- pared for April 30. You notice that cheque #808 for $850 is not included with the cancelled cheques that are returned by the bank with the bank statement. Your office is small and is managed by one employee, Brent Wicker. When questioned, Brent cannot locate the missing cheque. What do you do, if anything? Explain. REET/Downloads/BRS.pdf The bank reconciliation prepared by TJ Company on March 31, 2017, follows: TI Company Bank Reconciliation March 31, 2017 $7.670 Book balance Bank Statement balance Add: Deposit of March 31 in transk ........... 18.540 1.100 $8.770 Deduct: Outstanding cheques: 0797: #804: Adjusted bank balance $ 60 120 180 18.50 The following bank statement is available for April Te: Tu Com Bank Statement April 30, 2017 Bank of Nova Scotia Cheques/Charges/Debits Deposits/Credits Balance #811 #807 #810 NSF BOB #797 8814 13 04/03 04/07 04/13 04/18 04/23 04/27 04/30 04/30 834 375 208 450 850 60 550 372 04/03 04/07 04/13 04/18 04/23 04/27 04/30 INT 1.100 810 690 680 355 750 620 7,670 7.936 8.371 8.853 9,083 8,588 9278 9,345 ng 47 O i E w TE NE hp 120 X BRS Cemeworklep With Che X Gry for Class VK X + C/USHARPREET/Downloads/RS.pdf 18. Company $ April 30, 2017 Bank of Nova Scotia Che/Chery/Debita Deposlta/Credits Balance 7,679 7.936 Ra 8811 04/03 0807 04/07 OR10 04/13 NSF 04/18 BOB 04/23 6797 04/27 1814 04/30 813 04/30 80 04/30 SC 04/30 NSF - Not Sufi 834 375 208 450 850 60 550 372 124 32 04/03 04/07 04/13 04/18 04/23 04/27 04/30 INT 1.100 810 690 680 355 750 620 47 8.371 8.853 4083 8,588 9.278 9,348 4,023 8,899 8,867 04/30 GET interest A list of deposits made and cheques written during April, taken from the cash receipes journal and cash disbursements journal, is shown below: Cheques Written Deposits Made April 7 13 18 23 27 30 30 Total April Cash Recipes 810 640 680 385 750 620 770 14 675 No. BOT BON 804 810 811 812 13 $ 375 850 124 200 348 207 372 350 405 602 14041 814 RIS 816 Total April Cash Disements ORI > e E 3 w e hp Q 10 - + 144 pit se delete home 4 95 5 & 6 ( 7 8. 9 backspace Tum lock R T Y U O P o to X Pod Attendum ERS X Cetak With Che X G Arany for VK X + Tile/Users/HARPREET/Download+ General Ledger Cash Account: Explanation Cash Debit PR Acct. No. 101 Balance Credit Date 2017 March 31 April 30 30 Balance CR12 4,675 8.540 13,265 9.224 In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #811, for delivery expense, was recorded in the cash disbursements journal incorrectly as $348. The NSF cheque for $450 was that of customer A. Hussain, deposited in April. Planning the solution Set up a schedule like Exhibit 7.10 with a bank side and a book side for the reconciliation. Follow the nine steps used in the chapter to prepare the bank reconciliation For every reconelling item on the book side, prepare an entry, if required. Prepare an answer to the analysis component, o > E CE 3 9 19 + 4+ Y delete $ TORTE % & 4 5 6 7 00 9 0 backspace R T Y U O a