Question
Question 1 (16 marks) Western Flyers received its bank statement for the month of July 2019 with an ending balance of $11,065.00. Western Flyers determined
Question 1 (16 marks)
Western Flyers received its bank statement for the month of July 2019 with an ending balance of $11,065.00. Western Flyers determined that check #598 for $125.00 and check #601 for $375.00 were both outstanding. Also, a $7,500.00 deposit for July 30th was in transit as of the end of the month. Big Bucks Bank also collected an amount of $5,300 from a client of Western Flyer as payment of a note ($5,000) and interest ($300) earned on a note. Big Bucks Bank charged Flyers a $15.00 fee for the collection service and $20 for issuance of 10 check books.A check for $75.00 from Colin Abraham, a client, was returned with the bank statement marked "NSF". The ending balance of the Western Flyers cash account is $12,875.00.
Required:
a)make a bank reconciliation based on the above information (9 marks)
b)make any necessary journal entries to update the ledger. Explanation is not required. (7 marks)
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