Question 1 KONA LTD Bank reconciliation statement as at 30 November 2020 Cash balance per bank statement $14 367.90 Add: Outstanding deposits 2 530.20 16 898.10 Less: Unpresented cheques Cheque no. 3451 $2 260.40 Cheque no. 3470 270.10 Cheque no. 3471 844.50 Cheque no. 3472 1 426.80 Cheque no. 3474 1 500.00 6 301.80 Cash balance as per ledger $10 596.30 The adjusted cash balance per bank agreed with the cash balance per books at October 31. The December bank statement showed the following cheques and deposits Information from bank statement Cheques Deposits Date Number Amount Date Amount 1-12 3451 $2 260.40 1-12 $2 530.20 2-12 3471 844.50 4-12 1 211.60 7-12 3472 1 426.80 8-12 2 365.10 4-12 3475 1 640.70 16-12 2 672.70 8-12 3476 1 300.00 21-12 2 945.00 10-12 3477 2 130.00 26-12 2 567.30 15-12 3479 3 080.00 29-12 2 836.00 27-12 3480 600.00 30-12 1 025.00 30-12 3482 475.50 Total $18 152.90 29-12 3483 1 140.00 31-12 3485 540.80 Total $15 438.70 Kona Ltd's cash records for December showed the following: Cash payments journal Cash receipts journal Date Cheque number Amount Date Cheque number Amount Date Amount banked 1-12 3475 $1 640.70 20-12 3482 $475.50 3-12 $1 211.60 2-12 3476 1 300.00 22-12 3483 1 140.00 7-12 2 365.10 2-12 3477 2 130.00 23-12 3484 832.00 15-12 2 672.70 4-12 3478 538.20 24-12 3485 450.80 20-12 2 954.00 8-12 3479 3 080.00 30-12 3486 1 389.50 25-12 2 567.30 10-12 3480 600.00 Total $14 384.10 28-12 2 836.00 17-12 3481 807.40 30-12 1 025.00 31-12 1 190.40 Total $16 822.10 The bank statement contained two items. 1. A credit of $3 145 for the collection of a $3 000 note for Kona Ltd; plus interest of $160 and less a collection fee of $15. Kona Ltd has not accrued any interest on the note. 2. A debit of $647.10 for a NSF cheque written by A. Jordan, a customer. At 31 December the cheque had not been redeposited by the bank. At 31 December the cash balance per Kona Ltd records before preparation of the reconciliation was $13 034.30, and the cash balance per bank statement was $19 580.00. The bank did not make any errors, but two errors were made by Kona Ltd. Using the four steps in the reconciliation procedure, complete the bank reconciliation at 31 December 2020. (List multiple items in order of magnitude. Round amounts to 2 decimal places.) KONA LTD Bank reconciliation statement as at 31 December 2020 Cash balance per bank statement $ Add: Less: $ Original balance of Cash at bank account $ Add: Less: $ $ SHOW LIST OF ACCOUNTS Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording cheques should be made to Accounts payable. The correction of any errors relating to recording cash receipts should be made to Accounts receivable.) Kona Ltd uses the following accounts: Cash, Accounts receivable, Interest revenue, Notes receivable, Accounts payable, Sales, Miscellaneous expense. (For multiple debit/credit entries, list accounts in order of magnitude. Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round amounts to 2 decimal places.) Date Particulars Debit Credit 31 Dec. (To record the collection of note receivable) 31 Dec. (To record NSF cheque) 31 Dec. (To record cheque error) 31 Dec. (To record deposit error) SHOW LIST OF ACCOUNTS By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.