Reference no: EM132943887

Question - The balance of cash shown in the bank statement of the firm as at April 30, 2021, was $725,965 while the balance of cash shown in its accounting records as at that date was $693,008.

The following information has been identified after a comparison of the bank statements and the accounting records.

(a) Cheque deposits in the aggregate amount of $30,000 were made through the ATM after the bank's business hours on April 30, 2021.

(b) The bank collected the proceeds from the maturity of a financial instrument issued in favour of the firm. The total collected was $22,000 of which $2,000 related to the interest received upon redemption. The bank charged a fee of $100 for processing the transaction.

(c) The bank statement showed an NSF entry of $4,500 relating to a cheque payment made by David Rampersad, a client of the firm, for services rendered.

(d) Cheques #2986, #2988 and #2991 issued by the firm were outstanding. These cheques were in the amounts of $28,000, $557 and $16,500 respectively.

(e) The bank incorrectly recorded a cheque issued in favour of the firm as being $2,525 when the amount stated on the cheque was $2,000. The entry was correctly recorded in the firm's accounting system.

(f) The bank charged its standard monthly service fee of $25.

REQUIRED - The partners requested the following as at April 30, 2021:

(a) Make a bank reconciliation statement;

(b) Make the adjusting entries in journal format; and

(c) Make the amount of cash that should appear on the firm's statement of financial position.