Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

it The accountant at Atherton Ltd prepares a monthly bank reconciliation On 31 August she received a bank statement from ABC Bank which had a

image text in transcribed
it The accountant at Atherton Ltd prepares a monthly bank reconciliation On 31 August she received a bank statement from ABC Bank which had a credit balance of $6,950. The company's cash at bank account per the general ledger showed a debit balance of $9,070. A comparison of the bank statement with the cash payments and cash receipts journal revealed the following information: Cash receipts recorded in the cash receipts journal on 30 August of $6,300 were not on the bank statement The bank statement included bank charges of $350, Unpresented cheques at 31 August totalled $7,550 In reviewing the cheque payments, a mistake was discovered on cheque no 574 for the payment of rent expense. The amount of the cheque was for $3,150 but was recorded in the cash payments journal as $3,510. The cheque amount appeared correctly on the bank statement V On 26 August the bank statement showed a dishonoured cheque received from P. Macca for $2,400 The bank made a mistake and included a cheque payment on Atherton's bank statement that related to Tolga Ltd. The cheque amount was for $980 ili iv. vi Required: a) Prepare a bank reconciliation as at 31 August 2021 (7 marks) b) Prepare the necessary adjusting journal entries as at 31 August 2021 (3 marks) No narrations are required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Managerial Accounting

Authors: Stacey M. Whitecotton, Robert Libby, Fred Phillips

5th Edition

1265117896, 9781265117894

More Books

Students also viewed these Accounting questions

Question

Solve each equation. log 81 27 = x

Answered: 1 week ago

Question

3. Put a rotating monitor in charge of equipment or materials.

Answered: 1 week ago