Problem 8 4a

P8-4A The cash receipts and the cash payments of Spinners Bowling for November 2020 are as follows: Cash Receipts Cash Payments Date Cash Debit Cheque No Cash Credit Nov. 5 $ 3,436 122 $ 1,819 470 1222 1,14 13 1,723 1223 429 15 1,065 1224 111 19 441 1225 816 24 10,875 1226 109 30 2.598 1227 4,468 Total $20.608 1228 998 1229 330 1230 2,724 Total $12.948 The Cash account of Spinners Bowling shows a balance of $26,983 on November 30, 2020. Outstanding amounts from the previous month's bank reconciliation were cheque number 1219 for $500, cheque number 1218 for $400, and an October 31 deposit in the amount of $2,000. On December 3, 2020, Spinners Bowling received this bank statement: Additional data for the bank reconciliation is as follows: BANK STATEMENT FOR NOVEMBER 2020 a The EFT deposit was a receipt of monthly Description Withdrawals Deposits Date rent. The EFT debit was payment for monthly Balance Forward Novo1 18.223 insurance Depout 2,000 Novo 20,22 b. The NSF cheque was received late in EFT Rent Collection BBC Novo 21.10 Deposit 3.436 October from a customer. Novo 24,539 NSF Cheque 43 Novo 24.10 C. The $1,430 bank collection of a note Cho #001221 1,819 Nov 22 28 receivable on November 30 included $100 Deposit Nov10 22,753 interest revenue. The #001222 1.14 Nov1 21 613 Chq#001223 Nov14 21,18 d. The correct amount of cheque number Deposit 1,723 Nov1 22.90 1227, a payment on account, is $4,968. (Spinners Cha#001224 111 Nov1 22,796 Bowling's accountant mistakenly recorded the Deposit 1.065 Nov1 23.86 EFT Imvurance NovIl 23.58 cheque for $4,468.) Depout 141 Nov20 24,02 Required Cha#001225 816 Nov22 23,21 1. Prepare the bank reconciliation of Depoult 10 875 Now2 34 08 Spinners Bowling at November 30, 2020. Cho#001226 109 Nov25 33.97 Cho#001227 4,968 Nov3 29,009 2. Describe how a bank account and the Bank Collection 1,430 Nov30 30,43 bank reconciliation help Spinners Bowling's Cho#001219 500 ov30 29,935 managers control the business's cash. Service Charge Nov3 29,914 10,629 12.320 3. How are outstanding items from the previous month's bank reconciliation that clear on the November bank statement dealt with? Explanations: EFT-electronic funds transfer, 3 NSF-nonsufficient funds Using the bank reconciliation as a control device 1. Adjusted balance, $28,060