The bank portion of last month's bank reconciliation showed the following for River Adventures Ltd.:

The reconciled cash balance per bank agreed with the reconciled cash balance per books after the bank reconciliation at April 30. The May bank statement showed the following:

River Adventures' cash receipts and payments for the month of May showed the following:

Additional information:
1. The bank made an error when processing cheque #543.
2. The EFT collection was not previously recorded.
3. Because the EFT for prepaid insurance payment occurred near the end of the month, it has not been recorded yet.
Instructions
(a) Calculate the unadjusted cash balance per books at May 31, prior to reconciliation.
(b) What is the amount of the deposits in transit at May 31?
(c) What is the amount of the outstanding cheques at May 31?
(d) Prepare the bank reconciliation at May 31.
(e) Prepare any journal entries required from the reconciliation.

Transcribed Image Text:

RIVER ADVENTURES LTD Bank Reconciliation April 30 Cash balance per bank Add: Deposits in transit $12,612 4,230 16,842 Less: Outstanding cheques $1,860 #533 #541 9822,842 $14,000 Reconciled cash balance RIVER ADVENTURES LTD Bank Statement May 31 Description Amounts Deducted from Account (Debits Amounts Added to Account (Credits) Date Balance Apr. 30 Opening balance May 1 Deposit 3 Cheque, No. 541 4 Cheque, No. 533 6 Cheque, No. 542 6 Deposit 10 Cheque, No. 543 18 EFT, collection on 12,612 4,230 16,842 15,860 14,000 12,380 2,11414,494 12,284 1,475 13,759 982 1,860 1,620 2,210 account from A. Osborne 19 Cheque, No. 544 28 Deposit 28 Returned cheque-NSF, 926 12,833 1,819 14,652 13,547 1,105 R. Lajeunesse 28 NSF fee 45 927 13,502 12,575 30 EFT, prepaid insurance payment 31 Bank service charges 95 12,480 and credit card fees Cash Receipts DateAmount May 6 $2,114 28 1,819 31 1,524 $5,457 Cash Payments Date Number Amount May 5542 $1,620 7 543 2,120 15 544 926 31545 1,535 $6,201