The following information is for SeaTrans Ltd. in April:

1.Deposit in transit, $1,958

2.Bank service charge, $40

3.Electronic receipts from customers in payment of the amount $ 1,256, not previously received by the company

4.Outstanding cheques, $2,359

5.Cheque # 459 was correctly written in the amount of $890 but was incorrectly written by the company's bookkeeper as $980. The cheque was written for the purchase of office supplies.

6.Cash balance per book, April 30, $8,593

7.Cash balance per bank, April 30, $10,670

Required:

Prepare the bank reconciliation at April 30. (10 marks)

Question 2. (15 Marks)

Wildflower Company began operations two years ago. Its adjusted account balances at December 31, 2018, are listed below:

Account

Debit

Credit

Cash

$1,300

Merchandise inventory

46,000

Store supplies

18,900

Store equipment

147,600

Accumulated depreciation, store equipment

29,000

Accounts payable

12,000

Nymeth Sarda, capital

158,800

Nymeth Sarda, withdrawals

2,000

Sales

342,200

Sales discounts

3,000

Sales returns and allowances

9,000

Cost of goods sold

111,600

Sales salaries expense

94,000

Rent expense, selling space

12,000

Office supplies expenses

1,000

Rent expense, office space

56,000

Advertising expense

39,600

Totals

$542,000

$542,000

Required

Prepare a classified multi-step income statement. (15 marks)