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On October 31 Tamarisk Ltd. received its bank statement from Provincial Bank. It stated that Tamarisk had a balance of $9,280 at October 31. The
On October 31 Tamarisk Ltd. received its bank statement from Provincial Bank. It stated that Tamarisk had a balance of $9,280 at October 31. The company's general ledger showed a cash balance of $9,890 at that date. A comparison of the bank statement and the accounting records revealed the following information: Bank service charges for the month were $50. The company had written and mailed outcheques with a value of $1,430 that had not yet cleared the bank. A cheque from one of Tamarisk's customers in the amount of $810 that had been deposited during the last week of October was returned with the bank statement as NSF. An electronic funds transfer payment(EFT) of $240 for monthly insurance expense was automatically deducted from Tamarisk's bank account on October 22. Tamarisk's bookkeeper had forgotten to record this transaction. During the month, the company's bookkeeper had recorded a cheque (#1872) paid for utilities as $575 rather than $755 (which was the amountwritten on the cheque and processed by the bank). The cash receipts for October 31 amounted to $760 and had been deposited in the night drop slot at the bank on the evening of October 31. These were not reflected on the bank statement for October. Prepare the bank reconciliation for Tamarisk at October 31. Bank Reconciliation October 31 $ What cash should Tamariskreporton its Balance Sheet as at October 31? The cash reported on the Balance Sheet at October 31 $ Prepare the journal entries necessary as a result of the bankreconciliation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record bank charges) (To record NSF cheque) (To record EFT) (To correct error in Cheque #1872)
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