P7-5B On May 31, O'Hearn Limited had a cash balance per books of $13,400. The bank statement from Community Bank on that date showed a balance of $15,230. A comparison of the bank statement with the company's Cash account revealed the following: 1. The bank statement included a bank service charge of $80. 2. The bank statement included two electronic collections from customers on account: $4,110 received from C. Campbell and $78 received from R. Pokoj. These were not previously recorded. 3. Cash sales of $1,672 on May 12 were deposited in the bank. The journal entry and the deposit slip were incorrectly made out and recorded by O'Hearn for $1,712. The bank detected the error and credited O'Hearn for the correct amount. . Outstanding cheques at April 30 totalled $2,900. Of these, $2,240 worth cleared the bank in May. There were $1,892 of cheques written in May that were still outstanding on May 31. 5. On May 18, the company issued cheque #1181 for $1,370 to a creditor in payment of its account. The cheque, which cleared the bank in May, was incorrectly journalized and posted by O'Hearn as being for $1,136. 6. Included with the cancelled cheques was a cheque issued by O'Bearne Inc. for $1,200 that was incorrectly charged to O'Hearne by the bank. 7. On May 31, the bank statement showed a returned (NSF) cheque for $1,350 issued by a customer in payment of its account. In addition, the bank charged an $80 processing fee for this transaction. 8. The May 31 deposit of $1,926 was not included in the deposits on the May bank statement. The deposit had been placed in the bank's night deposit vault on May 31. Instructions (a) Prepare the bank reconciliation on May 31.ACCT 1202 Homework... 3. a. The Morosco Hotel and Casino in the older part of Las Vegas had budgeted sales of 900 room-nights during this past week, at an average room rate of $350/room per night. In actual fact, the hotel sold only 820 room-nights, but at an average rate of $375/room per night. Please calculate the overall variance from budget in room sales (and remember that a variance requires a dollar figure AND the appropriate letter). Then split the variance into a Price Variance and a Volume Variance, showing that the two of them together make up the overall variance. b. During that same week at Moresco, housekeeping costs had been budgeted at $7.45 per room, with an expected 900 rooms to clean up. Actual housekeeping costs were $7.10 per room, but of course there were 820 rooms to clean, not 900. Calculate the overall variance from budget for housekeeping costs, then split it up into a Cost Variance and a Volume Variance, showing that the two of them together make up the overall variance.c. Would you want to investigate the Housekeeping Cost Variance, and if so, what would you say to the head of this department? (If you do not believe that this variance should be investigated, you may answer by saying this, but in that case, please explain why.) (10 marks, divided 4, 4, 2) The End