Question
The reconciled cash balance per books and per bank for Tiffany Ltd. at November 30, 2022 is $13,211.55. The following cheques and receipts were recorded
The reconciled cash balance per books and per bank for Tiffany Ltd. at November 30, 2022 is $13,211.55. The following cheques and receipts were recorded for the month of December, 2022:
Cheques Receipts
No. Amount No. Amount Amount Date
17 $423.22 22 $ 534.76 $ 985.5 Dec 5
18 981.23 23 1,924.43 846.52 21
19 126.00 24 876.92 722.63 27
20 622.50 25 218.05 1,328.00 31
21 342.15
In addition, the bank statement for the month of December is presented below:
Balance Amounts Deducted (Debits) Amounts Added (Credits) Balance
Last Statement No. Total Amount No. Total Amount This Statement
$7,111.98 10 $3,942.14 5 $10,339.03 $13,508.87
Cheques and other debits Deposits Date Balance
No. Amount No. Amount No. Amount
14 184.81 17 423.22 22 534.76 6,284.38 Dec 1 $12,253.57
18 891.23 24 876.92 985.50 8 $11,470.92
19 126.00 25 218.05 846.52 23 $11,973.39
21 342.15 20.00 SC 722.63 29 $12,333.87
325.00 NSF 1,500.00 EFT 31 $13,508.87
Symbols: NSF (Not sufficient funds) SC (Service charge) EFT (Electronic funds transfer)
Cheque #18 was correctly written for $891.23 for a payment on account. The NSF cheque was from Mrs. W. Rask, a customer, in settlement of an account receivable. An entry had not been made for this. The EFT is for an electronic collection of accounts receivable in the amount of $1,500, which has not yet been recorded by the company. The bank service charge is $20.
Instructions
(a) Calculate the unadjusted cash balance per books at December 31, 2022.
(b) Prepare a bank reconciliation at December 31, 2022.
(c) Identify any items that require journal entries as a result of the bank reconciliation and indicate the account, other than cash, impacted. For students that wish to challenge themselves, you may also provide if the account will be debited or credited but this is not required.
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