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Organo Limited (Organo) sells organic skincare products. The company uses the Regal Bank for its business banking and to process business transactions. On 31 May
Organo Limited ("Organo") sells organic skincare products. The company uses the "Regal Bank" for its business banking and to process business transactions. On 31 May 2023, the monthly bank statement from Regal Bank showed a closing credit balance of $27,300, while the company's Cash in Bank' general ledger account showed a debit balance of $26,300 (before adjusting for any applicable banking events below). References (Ref). Ref-1: Outstanding Electronic Funds Transfers (EFTs), totalling \$1,280 from the April 2023 bank reconciliation statement has been recognised by Regal Bank during May 2023 (this was verified in the May 2023 bank statement). Ref-2: Organo's May 2023 cash journals showed that the company executed payments via EFTs totalling $2,800, but they are still outstanding and not yet reflected in the May 2023 monthly bank statement. Ref-3: Organo's May 2023 cash journals showed that the company acknowledged deposits totalling $3,500, but they are still outstanding and not yet reflected in the May 2023 monthly bank statement. Ref-4: Organo discovered that Regal Bank had charged the company $350 for bank fees, this item was not accounted for in the 'Cash in Bank' general ledger account. Ref-5: A deposit of $1,500 (as correctly shown in the bank statement) from a customer was recorded by Organo in error as $1,050 in its 'Cash in Bank' general ledger account due to a transposition mistake. Ref-6: The bank statement showed that a dishonoured accounts receivable of $600 received from a customer was returned by Regal Bank. Organo had originally recorded this amount in its 'Cash in Bank' general ledger account. Ref-7: The bank statement showed that Regal Bank collected a note receivable on behalf of Organo worth $2,000, plus the associated $200 interest income. The company was not aware of this event and hence it was not recorded in the 'Cash in Bank' general ledger account. 7 Q7(a): Prepare any adjusting journal entries necessary for Organo Limited's 'Cash in Bank' account in the general ledger on 31 May 2023 as a part of the bank reconciliation process. (10 marks) Fill in your answer in the boxes provided. Not all boxes need to be completed. For general journal entries, narrations are NOT required and ignore GST. Make sure each Debit (Dr) and Credit (Cr) entry is typed in on a separate line within the Inspera text answer box
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