Question 1 (35 points) Consider the following information and prepare a bank reconciliation, along with any resulting journal entries, for Barton Corporation for the month ended October 31, 2015. Please enter journal entries for each of the following, if required. 1. Outstanding deposit 2. Interest earned 3. NSF cheque 4. Bank service charge 5. Error 6. Notes receivable collected 7. Outstanding cheque 24,351 Bank statement balance Add: Outstanding deposit Barton Corporation Bank Reconciliation September 30, 2015 24,650 Book balance Add: 1,050 Interest earned 25,700 Deduct: Bank service charge 1,350 24,350 Adjusted book balance 9 24,360 10 Deduct: Outstanding cheques: #293 Adjusted bank balance 24,350 Bank Statement To: Barton Corporation Cheques/Charges/Debits October 31, 2015 Deposits/Credits October 4, 2015 October 8, 2015 October 12, 2015 October 15, 2015 October 20, 2015 1,050 1,150 800 1,200 800 #300 October 23, 2015 #293 October 23, 2015 #303 October 23, 2015 #301 October 23, 2015 #298 October 23, 2015 #299 October 23, 2015 #304 October 23, 2015 #302 October 27, 2015 NSE October 27, 2015 Bank service charge October 31 2015 1,150 1,350 1,250 1,000 1,350 1,250 172 900 450 10 Balance 24,650 24,550 24,350 23,900 24,100 23,550 22,300 22,128 21,228 20,778 20.777 Interest earned 9 24,351 Bank statement balance Add: Outstanding deposit Barton Corporation Bank Reconciliation September 30, 2015 24,650 Book balance Add: 1,050 Interest earned 25,700 Deduct: Bank service charge 1,350 24,350 Adjusted book balance 9 24,360 10 Deduct: Outstanding cheques: #293 Adjusted bank balance 24,350 Bank Statement To: Barton Corporation Cheques/Charges/Debits October 31, 2015 Deposits/Credits October 4, 2015 October 8, 2015 October 12, 2015 October 15, 2015 October 20, 2015 1,050 1,150 800 1,200 800 #300 October 23, 2015 1,150 #293 October 23, 2015 1,350 #303 October 23, 2015 1,250 #301 October 23, 2015 1,000 #298 October 23, 2015 1,350 #299 October 23, 2015 1,250 #304 October 23, 2015 172 #302 October 27, 2015 900 NSE October 27, 2015 450 Bank service charge October 31, 2015 10 Balance 24,650 24,550 24,350 23,900 24,100 23,550 22,300 22,128 21,228 20,778 20,777 Interest earned 9 Cheque #304, for office supplies in the amount of $172 was recorded in the Cash Disbursements Journal incorrectly as $1,722. The NSF cheque for $450 was that of a customer. Cheques Written Debit Cash Date Desc. PR 30/Sep Balance 31/Oct CR10 31/Oct CD12 Account No. 101 Credit Balance 24,350 29,100 11,422 17,678 No. 298 299 300 4,750 301 302 303 304 305 306 1,350 1,250 1,150 1,000 900 1,250 1,722 1,350 1,450 11,422 Deposits Made October 8 12 15 20 31 Total Cash Receipts in October 1,150 800 1,200 800 800 4,750 Total Cash Disbursements in October a) Prepare a bank reconciliation, for Barton Corporation for the month ended October 31, 2015. Barton Corporation Bank Reconciliation October 31, 2015 Book balance Add: Bank statement balance Add: Deduct: Deduct: Outstanding cheques: Adjusted bank balance Adjusted book balance Cheque #304, for office supplies in the amount of $172 was recorded in the Cash Disbursements Journal incorrectly as $1,722. The NSF cheque for $450 was that of a customer. Cheques Written Debit Cash Date Desc. PR 30/Sep Balance 31/Oct CR10 31/Oct CD12 Account No. 101 Credit Balance 24,350 29,100 11,422 17,678 No. 298 299 300 4,750 301 1,350 1,250 1,150 1,000 900 1,250 1,722 1,350 1,450 11,422 Deposits Made October 8 12 1,150 800 1,200 800 302 303 304 305 306 Total Cash Disbursements in October 15 20 31 Total Cash Receipts in October 800 4,750 a) Prepare a bank reconciliation, for Barton Corporation for the month ended October 31, 2015. Barton Corporation Bank Reconciliation October 31, 2015 Book balance Add: Bank statement balance Add: Deduct: Deduct: Outstanding cheques: + -1 Adjusted bank balance Adjusted book balance b) Prepare resulting journal entries, if any. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). General Journal Account/Explanation Page GJ3 F Debit Credit Date + - +-1