Exercise 7-9 (Part Level Submission) The bookkeeper for Sandhill Manufacturing Ltd. was trying to determine what items would be used in preparing the company's bank reconciliation that she is completing at May 31, 2018, which was the company's first month of operations. The company's bank statement showed the following: SANDHILL MANUFACTURING LTD. Bank Statement May 31 Date Description Amounts Deducted from Account (Debits) Amounts Added to Account (Credits) Balance May 1 Deposit 28,000 28,000 3 Cheque, No. 001 1,520 26,480 5 Cheque, No. 002 7,400 19,080 15 Deposit 4,720 23,800 19 Cheque, No. 004 7,540 16,260 21 Cheque, No. 006 1,010 15,250 25 Returned cheque-NSF, S. Gillis 1,420 13,830 25 NSF fee 27 13,803 27 Cheque, No. 009 2,290 11,513 28 Cheque, No. 010 2,080 42 9,433 9,391 31 Bank service charges Sandhill's cash receipts summary (which were all deposited) and cheque summary (which were all mailed out to suppliers) for the month of May showed the following: Cash Receipts Cash Payments Date May 1 Amount $28,000 Date Number Amount May 15 4,720 31 7,310 $40,030 23158 001 $1,520 002 7,400 14 003 1,790 004 7,540 005 340 19 006 1,010 (a) KUNNE 19 006 1,010 007 2,130 008 570 009 2,290 26 010 2,080 $26,670 Your answer is correct. Review Sandhill's cash receipts summary and determine the amount of any deposits not recorded by the bank. These will be deposits in transit. Hint: It can be useful to check off or cross out the deposits that appear on both the bank statement and on the cash receipts summary because these will not be deposits in transit. Deposit in transit of May 31 7310 SHOW ANSWER LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 2 used. SHOW ANSWER LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. (b) Your answer is correct. Attempts: 1 of 2 used % You have surpassed the number of attempts to earn Maximum Points for this question. For this attempt, and any subsequent attempt(s), you will earn points according to the Point Potential policy set by your instructor. Review Sandhill's cheque summary and determine the amount of any cheques that have not yet cleared the company's bank account. These will be outstanding cheques. Hint: It can be useful to check off or cross out the cheques that appear on both the bank statement and on the cheque summary because these will not be outstanding cheques. Outstanding Cheques: Cheque No. 003 - May 14 1790 Cheque No. 005 - May 18 340 Cheque No. 007 - May 22 2130 Cheque No. 008 - May 23 570 4830 (c) Your answer is correct. Review Sandhill's bank statement and identify any items on it that are not included in either the company's cash receipts summary or cheque summary. These will be reconciling items to the "Cash balance per books." Returned cheque - NSF S. Gillis NSF fee Bank service charges 1420 27 42 SHOW ANSWER LINK TO TEXT 1489 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. (d) Your answer is incorrect. Try again. Determine the cash balance per books prior to the reconciliation. Hint: This would be equal to: Balance in the cash account at the beginning of the month + Deposits made during the month - Cheques issued during the month. Cash balance per books 10880 SHOW SOLUTION SHOW ANSWER LINK TO TEXT (e) Prepare Sandhill's bank reconciliation at May 31 and determine the company's reconciled cash balance. (List items that increase balance as per bank & books first.) SANDHILL MANUFACTURING LTD Bank Reconciliation May 31