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On 31 May 2020 Intercontinent Ltd had a cash balance as per company records of $ 10,949 debit. The bank statement from Community Bank that

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On 31 May 2020 Intercontinent Ltd had a cash balance as per company records of $ 10,949 debit. The bank statement from Community Bank that date showed a credit balance of $15,569 20. A comparison of the statement with the cash account revealed the following facts: 1. The statement included a debit entry of $120 for the printing of additional company cheques 2. Cash sales of $1,672,30 on 12 May were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for 3. Unrepresented cheques at 31 May totalled $2,552.50, and outstanding deposits were $1,672,30 4. On 18 May Intercontinental Ltd. Issued cheque no. 1181 for $1.370 to M. Holms on account. The cheque, which cleared the bank in May, was 5. A $6,000 note receivable was collected by the bank for intercontinental Ltd on 31 May plus S160 interest. The bank charged a collection fee of $40. 6. Included with the cheques paid was a cheque issued by Teller Pty Ltd to P.Janet for $1,200 that was incorrectly charged to Intercontinental Lid. by 7. On 31 May the bank statement showed a dishonoured cheque of $1,400 that had been issued by W. Hoad, a customer, to Intercontinental Ltd. Required (a) Prepare a bank reconciliation statement as at 31 May 2020 (15 marks) (b) Prepare the necessary adjusting entries as at 31 May 2020 (5 marks) the bank

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