Prepare the bank reconciliation based on the following information:

Prepare any related journal entries

1. Bank Balance, December 31, 2021: $10,288
2. Book Balance, December 31, 2021: $11,255

Notes:

1. The bank statement included a charge (debit memo) of $150 for the monthly bank services
2. The bank missed one $50 bill when processing a deposit.
3. Outstanding cheques as of December 31, 2021, were $688.00.
4. Deposits in transit as of December 31, 2021, were $2,550.
5. The bank statement included an NSF charge of $405.00 for a cheque received from a customer.
6. A note receivable worth $1,500 was received into the company’s bank account on December 31, 2021, from a customer on account that was not yet recorded.

Plants from Paradise

Bank Reconciliation

December 31, 2021

Add:

Less:

Add:

Less:

Journal Entry Template:

Entry #

Date

Account Name

Debit or Credit

Amount

Can you please assist me in completing the forecast and drafting answers to the outstanding questions?

Projected Cash Flows for January 2022:

1. Payroll (2 times, at $2,750)
2. Mortgage (1 time, at $3,500)
3. Sales projection (weekly, at $550)
4. Bills (end of month, $5,850)

Bankers Questions:

1. What is the current cash position of the company, and what do you anticipate having at the end of the month? 
2. Are you able to make next month’s mortgage payment? How much would you need to borrow?
3. 
   
4. Miranda’s Questions:
5. 
   
6. If we borrowed from a line of credit to fund 3 months of funding, how much should we ask for?
7. If the line of credit has an interest rate of 5.05%, what would the interest charge be if we took your recommended amount (from question 1) for the 3 months period of January 1 – March 31, 2022.

Cash Forecast Template

Plants from Paradise

Cash Forecast

December 31, 2021

Cash Balance, Reconciled

Add: Cash in-flows

Less: Cash out-flows

Projected Cash Balance