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Part 1 (24 marks) Norwest Ltd (Norwest) received the bank statement from Hongkong Bank showing a balance of $59,782 at 31 January 2021. The cash

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Part 1 (24 marks) Norwest Ltd ("Norwest") received the bank statement from Hongkong Bank showing a balance of $59,782 at 31 January 2021. The cash account in the general ledger of Norwest showed a balance of $45,202 as at 31 January 2021. Norwest adjusts its account annually and its year end date is on 31 December. There were no outstanding checks and deposits in transit at the end of December 2020. The following information is also provided: 1. Two checks amounted to $1,400 and $4,200 were mailed to the bank for deposit but had not reached the bank before 31 January 2021. 2. Total checks issued by Norwest were $25,000 and the checks cleared by the Hongkong Bank were $20,500. 3. The bank statement showed that a check of $6,300 issued by Beautiful Ltd, a customer of Norwest, was deducted from the bank account of Norwest because of insufficient fund. 4. A 3-month note receivable made on 1 November 2020 of $23,000 and all 3 months' accrued interests of $300 ($100 for each month) were collected and credited directly to Norwest's bank account on 31 January 2021. No interest payment was received by Norwest since 1 November 2020. 5. Dividend income on investment of $600 was directly credited by the bank. 6. An error was discovered in the cash account, in which the payment of $4,100 for rent expense was erroneously recorded as $3,000. 7. The bank has incorrectly debited an amount of $820 to Norwest's bank account for a check issued by Northwest Ltd. Required: (a) Prepare a bank reconciliation statement as at 31 January 2021. Show your workings. (16 marks) (b) Prepare the journal entries that should be made in the accounting records of Norwest Ltd as a result of the above bank reconciliation. (8 marks)

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