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Sintok Enterprise is a company located in Sintok, Kedah. The cash account for Sintok Enterprise on 1 September 2020, indicated a balance of RM4,820. The
Sintok Enterprise is a company located in Sintok, Kedah. The cash account for Sintok Enterprise on 1 September 2020, indicated a balance of RM4,820. The bank statement indicated a balance of RM4,770 on 30 September. Follows are related activities that occurred in the month of September 2020.
- Checks issued by the company for the month of September 2020 totaled RM1,320 have not been cleared yet.
- A cash deposit of RM1,580 deposited on 30 September 2020 has not been listed in the statement issued by the bank.
- A check for RM530 had been incorrectly charged by the bank as RM350.
- Bank service charges for September are RM30.
- A collection by the bank from Company A is RM910.
- A check labeled NSF for RM850 issued by Company B was returned with the statement by the bank.
REQUIRED:
a. Prepare a bank reconciliation statement as of 30 November 2020.
b. Journalize the necessary entries. The accounts have not been closed. Omit the journal explanations.
c. Explain how a bank account can be considered as a control tool for cash.
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