P8-4B The cash receipts and the cash payments of Ace Hardware for January 2020 are as follows: Cash Receipts Cash Payments Date Cash Debit Cheque No. Cash Credit Jan. 3 $20,988 311 $ 3,672 1,480 312 1,668 10 1.980 313 12,562 16 7.788 314 2.584 22 20,736 315 8,588 29 2,404 316 3,900 31 1,428 317 1,304 Total $56.804 318 5,268 319 800 320 12,664 Total $54,010 The Cash account of Ace Hardware shows a balance of $39,478 at January 31, 2020. Ace Hardware received the following bank statement on January 31, 2020: BANK STATEMENT FOR JANUARY 2020 b. The NSF cheque was received from A. Levine. Withdrawals Date Balance C. The $12,744 bank collection of a Balance Forward Jan01 36,684 note receivable on January 22 EFT Dividend Collection 1,052 Jano 37.736 included $200 interest revenue. Deposit 20,988 Jan04 58,724 Chal00311 3,672 Jano7 55.052 d. The correct amount of cheque Deposit 1,480 56.532 number 313, a payment on account, eposit 1.980 Jan12 58.512 is $12,436. (Ace Hardware's Cholo0313 12,436 Jan13 45.076 accountant mistakenly recorded the NSF Cheque 3,456 47,620 Cho#90312 1,668 Jan15 40.952 cheque for $12,562.) Deposit 7.788 8,740 Required Char00314 2,584 ants 45,155 1. Prepare the Ace Hardware bank EFT Insurance 1,316 Jan21 reconciliation at January 31, 2020. Bank Collection 12.744 lan2 57.954 Deposit 0,736 Jan23 78 320 2. Describe how a bank account and Charo0315 8,588 Jan2s 60. 732 the bank reconciliation help Ace Choro316 3,900 Jango 65,832 Hardware's owner control the Service Charge 40 Jan31 65,792 business's cash. 37,660 66 768 3. How would you handle items that were outstanding (bank side) from the previous month's bank Additional data for the bank reconciliation: reconciliation? a. The EFT deposit was a receipt of monthly rent. The EFT debit was *Using the bank reconciliation as a control payment of monthly insurance. device