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On July 31, Blossom Ltd. had a cash balance of $12,934 in its general ledger. The bank statement from the Caisse Populaire on that date
On July 31, Blossom Ltd. had a cash balance of $12,934 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $21,722. A comparison of the bank statement with the Cash account revealed the following:
1. | The bank statement included service charges and credit card fees of $118. | |
2. | The bank statement included electronic collections from customers on account totalling $5,230. Blossom had not recorded the EFT. | |
3. | A deposit of $3,100 made by another company was incorrectly added to Blossoms account by the Caisse Populaire. | |
4. | Salaries of $4,200 were paid electronically during the month. The company has already recorded these. | |
5. | Cheques outstanding on June 30 totalled $2,738. Of these, $2,162 worth cleared the bank in July. All cheques written in July cleared the bank in July. | |
a) prepare the bank reconcilliation at July 31 | ||
b)Prepare the journal entries required from the rconciliation | ||
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