Question
The October 31, 2019 bank statement for Lindsay Ltd had an ending balance of $4,250.12. The cash account according to the company's records was $3,433.52
The October 31, 2019 bank statement for Lindsay Ltd had an ending balance of $4,250.12. The cash account according to the company's records was $3,433.52 as at the same date.
The following additional data was available:
a. There is an outstanding deposit of $1,200.00 on October 31st
b. There were outstanding cheques totalling $2,118.60 as at October 31.
c. The bank service fee was $30.00 for October. Lindsay did not know about this charge until it received the bank statement.
d. A cheque in the amount of $450.00 deposited by Lindsay on October 21st had been returned NSF and the bank charged a $12.00 fee on the item. Lindsay had not known about the returned item until it received the bank statement.
e. The bank collected $120 from one of Lindsays customer on behalf of Lindsay. The company was not aware of this until it received the bank statement.
f. The bookkeeper incorrectly recorded a $257 cheque #1222 as $527.
Required:
a. Prepare the bank reconciliation for Lindsay Ltd as at October 31, 2019.
b. Prepare the journal entries required to adjust the books on October 31.
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