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P4-1A. Preparing a bank reconciliation (Learning Objective 1) 20-25 min. The September cash records of Povich Industrial Inc. follow: Cash Receipts (CR) Cash Payments
P4-1A. Preparing a bank reconciliation (Learning Objective 1) 20-25 min. The September cash records of Povich Industrial Inc. follow: Cash Receipts (CR) Cash Payments (CP) Date Sep 4 9 Cash Debit Cheque No. Cash Credit $2,722 1416 7 1178 544 1417 750 14 875 1418 91 365 1419 341 30 2.035 1420 985 1421 230 1422 2,256 Povich Industrial Inc.'s Cash account shows a balance of $5,941 on September 30. On September 30, Povich Industrial Inc. received the follow- ing bank statement: Bank Statement for September Beginning Balance Deposits and other additions $ 4,060 Sep 1 $ 650 EFT 5 2,722 10 544 15 875 18 365 30 1,300 BC 6,456 Cheques and other deductions Sep 8 440 NSF 15 (Cheque no. 1416) 7 19 345 EFT 22 (Cheque no. 1417) 750 29 (Cheque no. 1418) 91 30 (Cheque no. 1419) 431 30 55 SC (2,119) $ 8,397 Ending Balance Explanations: BC-bank collection; EFT-electronic funds transfer; NSF-nonsufficient funds cheque; SC-service charge. Additional data for the bank reconciliation: a. The EFT deposit was a receipt of rent revenue. The EFT debit was pay- ment of insurance expense. b. The NSF cheque was received from a customer. c. The $1,300 bank collection was for a note receivable. d. The correct amount of cheque 1419 is $431. Povich Industrial Inc. mistak- enly recorded the cheque for $341. Requirement 1. Prepare Povich Industrial Inc.'s bank reconciliation at September 30.
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