T$106$CE $-$ Chapter $7$ Homework

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You are a college student and have just been hired to work part$-$time in the accounting department of Candy's Cleaning Services. The person you are replacing had difficulty preparing the bank reconciliation for April $30,$ which is shown below.

In comparing the bank reconciliation to the Cash account in the general ledger, you notice a problem. You investigate further and come up with some additional information as follows:

a$.$ The Cash account in the general ledger showed the following:

$\backslash$table$[[$Cash$,,,,],[$Date$,$Explanation,PR$,$Debit,Credit,Acct. No$.101],[$Balance$,,,,,]]$

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b$.$ The error in cheque #$93,$ for Utilities Expense, resulted from the bank incorrectly debiting our account for $$127$; the correct amount entered in the accounting records is $$247.$

c$.$ The bank statement showed interest expense of $$54$; there was no other interest.

d$.$ The bank debited our account for cheque #$879$ written by Candy's Hair Salon.

e$.$ Cheque #$86$ for $$14,056$ listed as outstanding on last month's bank reconciliation was not returned with the April $30$ bank statement.

Required:

a$.$ Prepare a corrected bank reconciliation for April $30,2023,$

$\backslash$table$[[\backslash$table$[[$CANDY$\text{'}$S CLEANING SERVICES$],[$Bank Reconciliation$],[$ nril $3n$ n $m?]]],[$Bank Statement,Company's Books$],[$Bank statement balance,,$$,33,466,$Book balance,,$],[$Add:$,,,$Add: $,,,],[$Error Cheque #$879,,2,635,,,],[,,,,,],[,,,,,],[$Deduct:$,,36,101,,$Deduct:,,$21,115],[,,,,,],[$Outstanding cheques:,,,NSF$,419,],[$Outstanding cheque #$100,1,421,,$Service charge,$138,],[$Outstanding cheque #$86,14,056,,$Interest expense,$54,],[$Error Cheoue #$93,120,,,,]]$

b$.$ Record the journal entries resulting from the corrected bank reconciliation.

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View journal entry worksheet

$\backslash$table$[[,$No$,$Date,General Journal,Debit,Credit$],[$i$,1,$April $30,$Interest expense,$5,],[,,,$Cash,,$54],[$i$,2,$April $30,$Interest expense,,$]]$

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