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Your assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing a proper reconciliation falls upon
- Your assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing a proper reconciliation falls upon you.
Brandon Company | |||
Bank Reconciliation | |||
May 31, 2017 | |||
Balance per books May 31 | $9,520 | ||
Add: | |||
Electronic Fund Transfer | $1,072 | ||
Deposit in transit | 2,467 | 3,539 | |
$13,059 | |||
Deduct: | |||
Bank charges | $14 | ||
NSF cheque, Rhonda Teal | 508 | ||
Outstanding cheques | 1,812 | ||
Error in cheque #78: correctly issued and processed by the bank for $770, but incorrectly recorded in the books as $730 (Accounts Payable–Delta Co.) | 40 | 2,374 | |
Indicated bank balance | $10,685 | ||
Balance per bank statement | 9,375 | ||
Discrepancy | $1,310 | ||
Required:
1. Prepare a proper bank reconciliation showing the true Cash balance.
2. Prepare the necessary journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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