The bank portion of the bank reconciliation for Lordline Limited as at 31 May 2020 was as follows.
| Lordline Limited |
| Bank Reconciliation |
| As at the 31 May 2020 |
The records per books for June 2020 showed the following.
Cash Balance per bank Add: Outstanding deposits $18,790.00 1,633.60 20,423.60 Less: Un-presented Cheques Cheque number 2451 2470 2471 2472 2474 Adjusted cash balance per bank agreed with the cash balance per the books Cheque Amount $1,260.40 730 945.6 503.6 1,050.00 4,489.60 $15,934.00 The June 2020 bank statement showed the following cheques and deposits: Withdrawals Deposits Date 1-Jun 2-Jun 5-Jun 4-Jun 8-Jun 10-Jun 15-Jun 18-Jun 18 Jun 27-Jun 30-Jun 29-Jun Total Cheque number Amount $ 2470 730.00 2471 945.60 2474 1,050.00 2475 1,640.70 2476 2,830.00 2477 600.00 2479 1,750.00 2480 1,330.00 cheque book charge 80.00 2481 695.40 2483 575.50 2486 900.00 13.127.20 Date 1-Jun cheque 4-Jun cheque 8-Jun cheque 13-Jun cheque 18-Jun cheque 21-Jun cheque 22 Jun direct debit 25-Jun cheque 28-Jun cheque 30-Jun cheque Total Amount $ 1,633.60 1,211.60 990.1 2,575.00 1,472.70 2,945.00 1,505.00 2,567.30 1,650.00 1,186.00 17.736.30 Cash Receipt Journal Cash Payment Journal Date Amount $ Date Cheque number Amount $ 3-Jun 7-Jun 12-Jun 17-Jun 1-Jun 2-Jun 2-Jun 1,211.60 990.1 2,575.00 1,472.70 2,945.00 2,567.30 2475 2476 2477 2478 2479 4-Jun 20-Jun 24-Jun 2480 1,640.70 2,830.00 600.00 800.00 1,750.00 1,330.00 695.40 566.00 575.50 850.20 952.80 900.00 2481 8-Jun 10 Jun 15-Jun 18-Jun 20-Jun 22-Jun 23-Jun 27-Jun 29-Jun 30-Jun Total 2482 1,650.00 1,186.00 1,338.00 15,935.70 2483 2484 2485 24-Jun 2486 2487 29-Jun 388.70 30-Jun 2488 1373.30 Total 15,252.60 Additional information: i. The credit of $1,505.00 shown on the bank statement was for the collection of a $1,400.00 note for Lord Limited plus interest of $120.00 and less a collection fee for $15.00. Lordline Limited has not accrued any interest on the note. ii. The Bank did not make any errors; two errors were made in Lord-line Limited. iii. On 30 June, the cash balance per books was $16,806.10. Required: (a) Calculate and show the as at 30 June 2020, the cash balance per the bank statement. (3 Marks) (b) Prepare the bank reconciliation as at 30 June 2020 (9 Marks) (c) As at 30 June 2020, compute and prepare the adjusted bank balance starting from the book balance. (5 Marks) (d) Prepare the adjusting entries based on the reconciliation. (Hint: The correction of any errors pertaining to recording cheques should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable). (8 Marks) Cash Balance per bank Add: Outstanding deposits $18,790.00 1,633.60 20,423.60 Less: Un-presented Cheques Cheque number 2451 2470 2471 2472 2474 Adjusted cash balance per bank agreed with the cash balance per the books Cheque Amount $1,260.40 730 945.6 503.6 1,050.00 4,489.60 $15,934.00 The June 2020 bank statement showed the following cheques and deposits: Withdrawals Deposits Date 1-Jun 2-Jun 5-Jun 4-Jun 8-Jun 10-Jun 15-Jun 18-Jun 18 Jun 27-Jun 30-Jun 29-Jun Total Cheque number Amount $ 2470 730.00 2471 945.60 2474 1,050.00 2475 1,640.70 2476 2,830.00 2477 600.00 2479 1,750.00 2480 1,330.00 cheque book charge 80.00 2481 695.40 2483 575.50 2486 900.00 13.127.20 Date 1-Jun cheque 4-Jun cheque 8-Jun cheque 13-Jun cheque 18-Jun cheque 21-Jun cheque 22 Jun direct debit 25-Jun cheque 28-Jun cheque 30-Jun cheque Total Amount $ 1,633.60 1,211.60 990.1 2,575.00 1,472.70 2,945.00 1,505.00 2,567.30 1,650.00 1,186.00 17.736.30 Cash Receipt Journal Cash Payment Journal Date Amount $ Date Cheque number Amount $ 3-Jun 7-Jun 12-Jun 17-Jun 1-Jun 2-Jun 2-Jun 1,211.60 990.1 2,575.00 1,472.70 2,945.00 2,567.30 2475 2476 2477 2478 2479 4-Jun 20-Jun 24-Jun 2480 1,640.70 2,830.00 600.00 800.00 1,750.00 1,330.00 695.40 566.00 575.50 850.20 952.80 900.00 2481 8-Jun 10 Jun 15-Jun 18-Jun 20-Jun 22-Jun 23-Jun 27-Jun 29-Jun 30-Jun Total 2482 1,650.00 1,186.00 1,338.00 15,935.70 2483 2484 2485 24-Jun 2486 2487 29-Jun 388.70 30-Jun 2488 1373.30 Total 15,252.60 Additional information: i. The credit of $1,505.00 shown on the bank statement was for the collection of a $1,400.00 note for Lord Limited plus interest of $120.00 and less a collection fee for $15.00. Lordline Limited has not accrued any interest on the note. ii. The Bank did not make any errors; two errors were made in Lord-line Limited. iii. On 30 June, the cash balance per books was $16,806.10. Required: (a) Calculate and show the as at 30 June 2020, the cash balance per the bank statement. (3 Marks) (b) Prepare the bank reconciliation as at 30 June 2020 (9 Marks) (c) As at 30 June 2020, compute and prepare the adjusted bank balance starting from the book balance. (5 Marks) (d) Prepare the adjusting entries based on the reconciliation. (Hint: The correction of any errors pertaining to recording cheques should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable). (8 Marks)
