You are required to perform a bank reconciliation at the end of August 2020 for Summerland Removals P/L. The bank reconciliation statement for the previous month is set out below: $ 594.20 Dr 1) Bank reconciliation statement on 31 July 2020: Balance as per bank statement Add: Cheques not debited by bank: $ No. 193 253 257 261 Bank error - deposit to incorrect account 660.00 248.20 417.40 719.20 420.00 2464.80 3059.00 1890.00 $ 1169.00 Cr Less: Outstanding deposit Balance as per Cash at Bank account 2) The progressive totals of the Cash Receipts Ipurnal is $34,621 and the Cash Payments Journal is $34,234 for the month of August 2020, before taking into account any of the items appearing on the bank statement. 3) The following items appear on the August bank statement but not in the cash journals for the same month: a) Unpresented cheques from July 2020 now appearing on the August statement were: cheque no.193, $660; cheque no.253, $248.20; and cheque no.257, $417.40. b) A deposit for cash sales on 1 August 2020 of $1,890 and a debit of $420 to correct the error from July 2020. c) The bank had collected rent of $840 from a tenant who leases space in Summerland Removals P/L warehouse. d) On 18 August a $1,024 cheque received from a customer and deposited by Summerland Removals P/L, was returned and marked "Insufficient Funds". 4) I e) On 14 August 2020, AAMI had charged the company's bank account for insurance premiums, for the amount of $2,050. 1) The bank statement included a debit of $30 for a Cheque book. The following items appear in the cash Journals but not on the bank statement: a) Cheques written during August that had not been presented for payment were: cheque no 288, for $984,40, cheque no 289, for $1,670, and cheque no.293, for $812 b) Cash Sales of $2,640 on 31 August were deposited in the bank but not included in 5) Additional information: a) On 31 August 2020 the bank statement showed a debit balance of $1,048.40. b) The accountant discovered that cheque no.290 for $315 in payment of the electricity and gas bill, had been incorrectly recorded in the cash payments journal as $375. c) Bank errors include the following: i. ii. Cheque no. 285 for $528 appears twice on the bank statement. Cheque no. 296 was entered correctly as $860 in the cash payment journal but appeared in the bank statement as $560. A deposit of $620 by Joe Summer to his personal bank account also held at the Commonwealth Bank. Required: a) b) Prepare bank reconciliation for Summerland Removals as of 31 August 2020 Prepare the necessary adjusting entries in the General Journal as at 31 August 2020 Prepare the Cash at Bank Ledger Account as at 31 August 2020. In your own words explain how the preparation of the bank reconciliations assists the internal control of cash for Summerland Removals Pty Ltd. c) d) a) Summerland Removals Pty Ltd Bank Reconciliation Statement as at 31 August 2020 Balance as per bank statement Dr $1 048.40 b) GENERAL JOURNAL Date GJI Particulars DR CR c) 2020 Cash at Bank 2020 Aug 1 Balance $1169.00 QUESTION 1 You are required to perform a bank reconciliation at the end of August 2020 for Summerland Removals P/L. The bank reconciliation statement for the previous month is set out below: $ 594.20 Dr 1) Bank reconciliation statement on 31 July 2020: Balance as per bank statement Add: Cheques not debited by bank: $ No. 193 253 257 261 Bank error - deposit to incorrect account 660.00 248.20 417.40 719.20 420,00 Less: Outstanding deposit Balance as per Cash at Bank account 2464.80 3059.00 1890.00 $ 1169.00 C 2) The progressive totals of the Cash Receipts Journal is $34,621 and the Cash Payments Journal is $34,234 for the month of August 2020, before taking into account any of the items appearing on the bank statement. 3) The following items appear on the August bank statement but not in the cash Journals for the same month: a) Unpresented cheques from July 2020 now appearing on the August statement were: cheque no.193, $660; cheque no.253, $248.20; and cheque no.257, $417.40. b) A deposit for cash sales on 1 August 2020 of $1,890 and a debit of $420 to correct the error from July 2020. 3) The following items appear on the August bank statement but not in the cash journals for the same month: a) Unpresented cheques from July 2020 now appearing on the August statement were: cheque no.193, $660; cheque no.253, $248.20; and cheque no.257, $417.40. b) A deposit for cash sales on 1 August 2020 of $1,890 and a debit of $420 to correct the error from July 2020. c) The bank had collected rent of $840 from a tenant who leases space in Summerland Removals P/L warehouse. d) On 18 August a $1,024 cheque received from customer and deposited by Summerland Removals P/L, was returned and marked "Insufficient Funds". On 14 August 2020, AAMI had charged the company's bank account for insurance premiums, for the amount of $2,050. The bank statement included a debit of $30 for a Cheque book. f 4) The following items appear in the cash journals but not on the bank statement: a) Cheques written during August that had not been presented for payment were: cheque no.288, for $984.40; cheque no.289, for $1,670; and cheque no.293, for $812. b) Cash Sales of $2,640 on 31 August were deposited in the bank but not included in the bank statement. 5) Additional information: a) On 31 August 2020 the bank statement showed a debit balance of $1,048.40. b) The accountant discovered that cheque no.290 for $315 in payment of the electricity and gas bill, had been incorrectly recorded in the cash payments journal as $375. c) Bank errors include the following: Cheque no. 285 for $528 appears twice on the bank statement. ii. Cheque no. 296 was entered correctly as $860 in the cash payment journal but appeared in the bank statement as $560. iii. A deposit of $620 by Joe Summer to his personal bank account also held at the Commonwealth Bank. Required: a) b) Prepare bank reconciliation for Summerland Removals as of 31 August 2020. Prepare the necessary adjusting entries in the General Journal as at 31 August 2020 Prepare the Cash at Bank Ledger Account as at 31 August 2020. In your own words explain how the preparation of the bank reconciliations assists the internal control of cash for Summerland Removals Pty Ltd. d) a) Summerland Removals Pty Ltd Bank Reconciliation Statement as at 31 August 2020 Balance as per bank statement Dr $1 048.40 b) GENERAL JOURNAL Date GJI Particulars DR CR MacBook Air 80 DOO 000 F4 so CIL F5 FO F? FB 79 GJ1 b) GENERAL JOURNAL Date Particulars DR CR MENTAR c) Cash at Bank 2020 2020 Aug 1 Balance $1169.00 d)