Question
Mask Limited received the bank statement from bank as at the end of June 2019: Deposit/ (Withdraw) Balance Balance, May 31 2019 $20,000 Deposits recorded
Mask Limited received the bank statement from bank as at the end of June 2019:
Deposit/
(Withdraw)
Balance
Balance, May 31 2019 $20,000
Deposits recorded during June $38,000 58,000
A note including $500 interest deposited by
a customer to the bank
2,400
60,400
Cheques cleared during June (41,000) 19,400
Bank service charges (40) 19,360
NSF check (given by customer B Johnson) (100) 19,260
Balance, June 30 2019 $19,260
The company had ending cash balances $22,000 and $17,700 in May 2019 and June
2019 respectively. It had checks written $41,300 and cash deposits $37,000 during June
2019. The bank reconciliation for 31 May 2019 showed that deposits in transit $2,000
was carried forward from 31 May 2019.
Required:
(a) Prepare bank reconciliation statement as at 30 June 2019. (12 marks)
(b) Prepare the journal entries that should be made in the accounting records after
the above bank reconciliation is prepared. (6 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started