Reference no: EM132814252
Question - The April 30 bank statement of Counselling Service Association (CSA) has just arrived from Scotiabank. To prepare CSA bank reconciliation, you gather the following data:
a. CSA's Cash account shows a balance of $6,610.64 on April 30.
b. The April 30 bank balance is $8,501.15.
c. The bank statement shows that CSA earned $16.55 of interest on its bank balance during April. This amount was added to CSA's bank balance.
d. CSA pays utilities ($280) and insurance ($60) by EFT.
e. The following CSA cheques did not clear the bank by April 30:
|
Cheque No.
|
Amount
|
|
237
|
$46.10
|
|
288
|
142.00
|
|
291
|
578.05
|
|
293
|
11.97
|
|
294
|
609.22
|
|
295
|
5.88
|
|
296
|
103.54
|
f. The bank statement includes a donation of $840, electronically deposited to the bank for CSA.
g. The bank statement lists a $10.60 bank service charge.
h. On April 30, the CSA treasurer deposited $15.35, which will appear on the May bank statement.
i. The bank statement includes a $320 deposit that CSA did not make. The bank added $320 to CSA's account for another company's deposit.
j. The bank statement includes two charges for returned cheques from donors. One is a $350 cheque received from a donor with the imprint "Unauthorized Signature." The other is a nonsufficient funds cheque in the amount of $66.85 received from a client.
Required -
1. Prepare bank reconciliation for CSA.
2. Journalize the April 30 transaction recorded to update CSA's Cash Account. Include an explanation for each entry.