Question 4 preparing a bank reconciliation and recording adjustments Pardworx reconciled its book balance of Cash with its bank statement balance on April 30 and showed two cheques outstanding at the time, #1771 for $15463 and #1780 for $955.65 The following information is available for May 31, 2020 reconciliation: From May 31, 2020 bank statement: Balance of previous statement on Apr. 30/20.. 5 deposits and other credits totalling... 9 cheques and other debits totalling Current balance as of this statement... Chequing Account Transactions $61,045.95 26,088.10 57,005.40 30,128.65 Date Date Amount May 04 May Transaction Description Credit memo +Deposit -Service charge 25 26 5,200.00 4,210.10 135.00 14 18 31 22 Amount 14,662.30 849.25 15,600.40 1,166.45 Cheque No. 1784 1783 1787 Transaction Description +Deposit +Deposit -NSF cheque +Deposit Amount 7,600.00 1,465.80 2,334.75 12,800.55 Date Date Amount May 01 May 26 28 Cheque No. 1785 1771 1788 02 620.15 15,463.10 985.65 29 15 16 1782 Aut. Ne 4,00 - 25 08930 45.826.75 Ape Balance CR- So 05 May 31 Na 1782 31466 30 8.9 as $12.500.55 165.80 7.600.00 620.15 974-35 2.114.75 395.65 4 1784 26 4,21010 8.126.95 19.05 Total May Cash Recipe 1786. 178 1788 1789 Total May Cash Disbursements $a R9 50 . Cheque #1788 was correctly written for $985.65 to pay for May utilities however, the bookkeeper misread the amount and entered it in the accounting records with a debt to Utilities expenses and credit to Cash as though it were for $895.65. the bank paid ad deducted the correct amount The NSF cheque was originally received from a customer, Gertie Mayer, in payment of her account. Its return was unrecorded. The credit memo resulted from $5300 electronic fund transfer for the collection of a customer payment. The bank had deducted a $100 bank service charge fee. The collection has not been recorded in the company books. . Required: 1. Prepare reconciliation for yardworxs 2. Prepare the general journal entries needed to adjust the book balance of Cash to the reconciled balance. Analysis: the preceding bank statement discloses two places where the cancelled cheques returned with the bank statement are not numbered sequentially. In other words, some of the prenumbered cheques in the sequence are missing. Several possible situations would explain why the cancelled cheques returned with a bank statement might not be numbered sequentially. Describe three possible reasons that this might occur Question 4: preparing a bank reconciliation and recording adjustments Yardworx reconciled its book balance of Cash with its bank statement balance on April 30 and showed two cheques outstanding at the time, #1771 for $15463 and #1780 for $955.65. The following information is available for May 31, 2020 reconciliation: From May 31, 2020 bank statement: Balance of previous statement on Apr. 30/20.. 5 deposits and other credits totalling... 9 cheques and other debits totalling.. Current balance as of this statement... Chequing Account Transactions $61,045.95 26,088.10 57,005.40 30,128.65 Date Amount Date Amount May 04 May Transaction Description +Credit memo Deposit -Service charge 25 26 5,200.00 4,210.10 135.00 14 18 31 22 Transaction Description +Deposit +Deposit -NSF cheque +Deposit Amount 7,600.00 1,465.80 2,334-75 12,800.55 Date Amount 14,662.30 849.25 15,600.40 1,166.45 Cheque No. 1784 1783 1787 1782 Date May May 01 26 28 Cheque No. 1785 1771 1788 620.15 15.463.10 985.65 02 29 15 16 Cash Acct. No. 101 Credit Balance Explanation PR Debat 2020 Apr. 30 Balance May 31 CR 29,289.05 CDB 44,627.20 73.916.25 28.089-50 45.826.75 Deposits Made May 4 14 $14,662.30 849.25 1,166.45 4,210.10 8.400.95 $29,289.05 26 31. Total May Cash Receipts....... Cheques Written No. 1782 1783 1784 1785 1786. 1787 1788. 1789. Total May Cash Disbursements. $12,800.55 1,465.80 7,600.00 620.15 974-35 2,334.75 895.65 1.398.25 $28,089 50 Cheque #1788 was correctly written for $985.65 to pay for May utilities however, the bookkeeper misread the amount and entered it in the accounting records with a debt to Utilities expenses and credit to Cash as though it were for $895.65. the bank paid ad deducted the correct amount. The NSF cheque was originally received from a customer, Gertie Mayer, in payment of her account. Its return was unrecorded. The credit memo resulted from $5300 electronic fund transfer for the collection of a customer payment. The bank had deducted a $100 bank service charge fee. The collection has not been recorded in the company books. Required: 1. Prepare reconciliation for yardworxs 2. Prepare the general journal entries needed to adjust the book balance of Cash to the reconciled balance. Analysis: the preceding bank statement discloses two places where the cancelled cheques returned with the bank statement are not numbered sequentially. In other words, some of the prenumbered cheques in the sequence are missing. Several possible situations would explain why the cancelled cheques returned with a bank statement might not be numbered sequentially. Describe three possible reasons that this might occur