The December 31, bank statement of Billy€™s Hamburger just arrived from Safety Bank.

To prepare the bank reconciliation, you gather the following additional data:
a. The following cheques are outstanding on December 31:
Cheque No. Amount
800 ....... $415
802 ....... 75
806 ....... 34
809 ....... 123
810 ....... 228
811 ....... 39
b. On December 31, Billy€™s Hamburger€™s treasurer deposited $330, but this deposit does not appear on the bank statement.
c. The bank statement includes a $410 deduction for a cheque written by Jenny€™s Jump Ropes rather than Billy's Hamburger. Billy€™s Hamburger notified the bank of this bank error.
d. Billy€™s Cash account shows a balance of $12,000 on December 31.
Requirements
1. Prepare the bank reconciliation for December 31.
2. Record the journal entries called for by the reconciliation. Include an explanation for each entry.

Transcribed Image Text:

Bank Statement for December Bal, Dec 1 Deposits EFT--rent EFT-deposit Interest Cheques $13,384 $700 400 12 1,112 No. Amount 807 808 $600 200 410 1668 (1,210) Other Charges Service charge NSF Cheque #998 NSF Cheque #201 60 205 284 $13,002 Bal, Dec 31