Question 4 (10 marks) Solar Ltd. received its bank statement for the month ended 31 October 2021. It shows a credit balance of $7,168, while the firm's cash at bank ledger shows a different balance from its bank statement. It has a debit balance of $2,512 at the end of the month. At the beginning of October, its cash at bank ledger had a debit balance of $9,880. 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 $ 880 $ $ 1.760 1,936 October 3 R. White 6 C. Nun 9 P. Paul 18 J. Candy B. Byron 27 Capital contribution 31 S. Bran $ 880 1.760 1,936 2,640 2,200 8,000 3,080 2,640 2,200 8,000 3,080 Total 20,496 # Cash Payments Journal Ref Date Details Cheque Dr Cr No. Acc. Wages exp. Other Cash Payables $ October $ $ $ 1 payables 312 1,760 1,760 4 wages 313 6,400 6,400 314 4,000 315 12 drawings 15 registration 19 advertising 22 payables 4,000 3,520 3,168 316 3,520 3,168 1,320 317 1,320 28 318 4,000 4,000 wages insurance 29 319 3,696 3,696 Total 27,864 Bank Statement Solar Ltd. Date Balance $ 1 9,880 CR 4 880 For the month ending 31 October 2021 particulars Dr Cr Oct Balance brought forward Cash/cheques 312 1,760 interest Cash/cheques 313 6,400 Cash/cheques 10,760 CR 9,000 CR 5 160 9,160 CR 7 1,760 10,920 CR 9 4,520 CR 10 1,936 6,456 CR 17 315 3,520 2,936 CR 19 4,840 Cash/cheques 314 20 4,000 3,168 7,776 CR 3,776 CR 608 CR 28 316 29 8,000 Cash/cheques 317 1,320 120 8,608 CR 7,288 CR 7,168 CR 30 Transaction fee Closing balance 7,168 CR 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 te W balance the account (using the running balance format for the ledger account).[2 marks)ting ANSWER b): C. Prepare a bank reconciliation statement for the month ended 31 October 2021. (4 marks) ANSWER c): d. What is the amount of cash that should be reported on the balance sheet prepared as at 31 October 2021, and what is the beginning cash balance that will be shown on the next month's bank statement? (2 marks) ANSWER d)