Question 4 (10 marks) Power Ltd. received its bank statement for the month ended 31 July 2021. It shows a credit balance of $10,321, while the firm's cash at bank ledger shows a different balance from its bank statement. It has a debit balance of $3,014 at the end of the month. At the beginning of July, its cash at bank ledger had a debit balance of $14,227. The business's cash receipts and cash payments journals and the Bank Statement for the month are provided below: + Cash Receipts Journal Date Details Ref Dr Cr Cash Acc. Revenue Other Receivable S $ 1.267 2.534 2,788 July 3 R. White 6 C. Nun 9 P. Paul 18 J. Candy B. Byron 27 Capital contribution 31 S. Bran 1.267 2.534 2.788 3.802 3.165 11,520 4,435 3.802 3.168 11.520 4,435 Total $29.514 Cash Payments Journal Ref Dr Date Details Cheque Cr No. Acc. Wages exp. Other Cash Payables July $ $ $ $ 1 payables 1012 2,534 2,534 4 wages 9,216 1013 1014 12 drawings 15 registration 19 advertising 1015 5,760 5,069 4,562 9,216 5,760 5,059 4,562 1,901 5,760 1016 22 payables 1017 1,901 28 wages 1018 5,760 29 insurance 1019 5,322 5,322 Total $ 40,124 Bank Statement Power Ltd, For the month ending 31 July 2021 Date particulars Dr Cr 1 July Balance brought forward Cash/cheques 5 1012 2534 4 1,267 Balance $ 14,227 CR 15,494 CR 12,960 CR 13,190 CR 15,724 CR interest 230 7 2,534 Cash/cheques 1013 9 9216 6,508 CR 10 2,788 9,296 CR Cash/cheques 1015 17 5069 19 6,970 Cash/cheques 1014 20 5760 28 1016 4562 4,227 CR 11,197 CR 5,437 CR 875 CR 12,395 CR 10,494 CR 10,321 CR 10,321 CR 29 11,520 Cash/cheques 1017 1901 30 Transaction fee 173 Closing balance Required: a. Update the cash receipts and cash payments journals by entering the necessary adjustments and total the cash receipts and payments in the journals for the month. (2 marks) ANSWER a): b. Post the total cash receipts and cash payments to the Cash at Bank ledger account and balance the account (using the running balance format for the ledger account). (2 marks) ANSWERb): C. Prepare a bank reconciliation statement for the month ended 31 July 2021. (4 marks) ANSWERC): d. What is the amount of cash that should be reported on the balance sheet prepared as at 31 July 2021, and what is the beginning cash balance that will be shown on the next month's bank statement? (2 marks) ANSWER d)