QUESTION 2 (20 MARKS) Goldman Food Store recently received its bank statement for the month of March, 2013 from Bank of New Kingston. The bank balance as stated in the cash account differs from the balance that appears on the bank statement. A comparison of the bank statement with the cash account revealed the following: Balance per the general ledger account for Cash at March 31 of $2,905 ii Balance per bank statement March 31 $9,250 iii) Examination of the paid cheques revealed that cheques #201 and #208 for $5,300 and 4,500, respectively, were not amongst the cancelled cheques returned with the statement. Deposits on March 30 and 31 not yet recorded by bank $5,200 iv) Included with the March statement was a $1,200 cheque drawn by P Lakeman, a customer of Goldman Food Store! This cheque was stamped "NSF." It had been included in the deposit of March 28 but had been charged back against the company's account on March 31 Comparison of the paid cheques returned by the bank with the entries in the accounting records revealed that cheque #210 written for the amount of $594 as payment to Brown Company, a supplier, as payment on account had been erroneously entered by the bookkeeper of Goldman Food Store as $549 Bank service charge for March was $50 v) vi) vii) viii) Check #318 was correctly prepared for $284 and was paid by the bank in March. This check however was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 ix) The bank collected a note receivable for the company for $4,000 plus $150 interest revenue Included with the cancelled cheques was a cheque for $1,550 drawn by the Goldhorne Freighters to A. Lopez. The cheque was charged to Goldman Food Store's account by the bank. x) Required: (a) (b) Prepare the adjusting journal entries that would be necessary, after preparing Prepare a bank reconciliation statement for Goldman Food Store at March 31 2013 (8% marks) the bank reconciliation statement for Goldman Food Store, to bring the company's book balance of cash into conformity with the reconciled cash balance at March 31, 2013 State and briefly cxplain three reasons why the cash balance as per the bank statement is often different from the cash book balance in a business 'ac.c:unt1ng s'ees..c' (7 marks) (c) (4Y marks) QUESTION 2 (20 MARKS) Goldman Food Store recently received its bank statement for the month of March, 2013 from Bank of New Kingston. The bank balance as stated in the cash account differs from the balance that appears on the bank statement. A comparison of the bank statement with the cash account revealed the following: Balance per the general ledger account for Cash at March 31 of $2,905 ii Balance per bank statement March 31 $9,250 iii) Examination of the paid cheques revealed that cheques #201 and #208 for $5,300 and 4,500, respectively, were not amongst the cancelled cheques returned with the statement. Deposits on March 30 and 31 not yet recorded by bank $5,200 iv) Included with the March statement was a $1,200 cheque drawn by P Lakeman, a customer of Goldman Food Store! This cheque was stamped "NSF." It had been included in the deposit of March 28 but had been charged back against the company's account on March 31 Comparison of the paid cheques returned by the bank with the entries in the accounting records revealed that cheque #210 written for the amount of $594 as payment to Brown Company, a supplier, as payment on account had been erroneously entered by the bookkeeper of Goldman Food Store as $549 Bank service charge for March was $50 v) vi) vii) viii) Check #318 was correctly prepared for $284 and was paid by the bank in March. This check however was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 ix) The bank collected a note receivable for the company for $4,000 plus $150 interest revenue Included with the cancelled cheques was a cheque for $1,550 drawn by the Goldhorne Freighters to A. Lopez. The cheque was charged to Goldman Food Store's account by the bank. x) Required: (a) (b) Prepare the adjusting journal entries that would be necessary, after preparing Prepare a bank reconciliation statement for Goldman Food Store at March 31 2013 (8% marks) the bank reconciliation statement for Goldman Food Store, to bring the company's book balance of cash into conformity with the reconciled cash balance at March 31, 2013 State and briefly cxplain three reasons why the cash balance as per the bank statement is often different from the cash book balance in a business 'ac.c:unt1ng s'ees..c' (7 marks) (c) (4Y marks)
