The following is the MaMa Pizza€™s bank statement:

MaMa Pizza€™s ledger shows the following transactions in the Cash account in June:

Additional information:
1. Deposit of $2,560 on July 31 was deposited in the bank on August 1.
2. Cheque 278 for $260 and cheque 298 for $1,260 were issued in July, and they were not cashed in August.
3. MaMa Pizza made an error in recording cheque 308 and the August 28 deposit. Cheque 308 was for delivery car rental fees and the deposit was a collection from a catering event.
Requirements
1. Prepare MaMa Pizza€™s bank reconciliation at August 31.
2. Record the entries to update the cash account balance. Include an explanation for each entry.
3. If the entries were not recorded in (2), what is the impact on each of the assets, liabilities, and shareholders€™ equity accounts?

Transcribed Image Text:

Date July 31 Description Debit Credit Balance 14,220 16,780 15,920 15,740 3,165 18,905 18,040 16,580 14,180 15,760 14,510 12,390 10,710 10,695 13,775 12,945 15,105 12,705 12,645 12,540 August 1 Deposit 2,560 3 | Cheque #264 4 Cheque #283 7Deposit 10 | Cheque #303 12 Cheque #304 15 EFT Salaries 16 Deposit 16 | Cheque #305 18 | Cheque #308 20 NSF cheque -Toni Ltd. 20 NSF Fee 24 EFT -Collection Roma Inc. 27 Cheque #310 28 Deposit 30 EFT- Salaries 30 Bank service charges 30 Interest charges 180 865 1,460 2,400 1,580 1,250 2,120 1,680 15 3,080 830 2,160 2,400 60 105 Date July 31 Description Debit Credit Balance 14,220 17,385 16,520 15,060 13,810 12,840 12,185 13,765 13,553 12,513 11,683 12,943 18,193 August 1 Deposit 3,165 8 Cheque #303 9 | Cheque #304 10 | Cheque #305 12 | Cheque #306 12 | Cheque #307 16 Deposit 16 | Cheque #308 20 | Cheque #309 22 | Cheque #310 28 Deposit 30 Deposit 865 1,460 1,250 970 655 1,580 212 1,040 830 1,260 5,250