Question $1(10$ marks$)$

Prepare a bank reconciliation for Ragnar Corporation for the month end of April, $2021.$ The month end general

ledger balance was $$58,900$ and the corresponding bank statement balance was $$64,850.$ Use the following

information to complete your bank reconciliation:

A$.$ A customer's cheque was returned NSF for the amount of $$10,000.$ The bank charged us a $2\%$

service charge for this.

B$.$ $$2,500$ of deposits that were recorded in our records do not show up on the bank statement.

C$.$ We recorded cheque #$2158$ in the amount of $$1,000$ for prepaid insurance. This cheque cleared the

bank but the amount was $$1,400.$ A review found that the cheque was originally recorded

incorrectly in our records and the amount that cleared the bank is correct.

D$.$ Outstanding cheques at the end of the month are:

a$.2168$$$3,000$

b$.2159$$$500$

c$.21451,000$

d$.2180$$$100$

E$.$ Cheque #$102$ for $$250$ cleared our bank statement. The company found out that this cheque is from

another business and it cleared from our account by mistake. The bank will make this correction

and add this amount bank into our account.

F$.$ A $$15,000$ note receivable was collected by the bank on our behalf but charged us a $2\%$ service

charge. The note and service charge cleared the bank statement but this is not recorded in our

records.

Question $2(10$ Marks$)$

Refer to question $1.$ Record the necessary journal entries for the bank reconciliation.