Question
On 31 December 2022, the Cash at Bank balance in the general ledger of Toby Ltd showed a debit balance of $11,766. The bank statement
On 31 December 2022, the Cash at Bank balance in the general ledger of Toby Ltd showed a debit balance of $11,766. The bank statement received from Community Bank has a credit balance of $11,000. While comparing the bank statement with the cash account in the attempt to reconcile the two balances, the following facts were discovered:
1. While the companys record showed $6,500 was deposited by Toby Ltd, the amount has not been recorded yet by the bank as at 31 December.
2. The bank statement showed a debit entry of $120 for bank fees.
3. On 31 December, the bank informed Toby Ltd that they had been incorrectly charged $1,500 by the bank. This amount will be added back to Toby Ltds account in the following month.
4. Outstanding EFTs at 31 Dcecmeber totalled $8,200.
5. On 31 December the bank statement showed a reversal entry of $900 that had been originally deposited by Jennifer, a customer, to Toby Ltd.
6. Cash sales of $660 deposited on 20 December was correctly recorded by bank. The cash receipts journal entry was incorrectly made for $606 by Toby Ltd.
Required
a. Prepare a bank reconciliation at 31 December 2022 based on the provided information.
b. Prepare journal to record the necessary adjusting entries at 31 December 2022.
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