Reference no: EM132561957

Question - Following the previous question, on 31 May 2019 Interactive Ltd had a cash balance as per company records of $18,000 debit. The bank statement from Community Bank on that date showed a credit balance of $ 16,800. A comparison of the statement with the cash account revealed the following facts:

1. The bank statement included a debit entry of $120 for managing the company's account.

2. Cash sales of $1,882 on 12 May were deposited in the bank. The cash receipts journal entry were incorrectly made for $1,782. The bank credited Interactive Ltd for the correct amount.

3. Cheque #420 for $1,350 have not yet been presented to the bank.

4. Cash receipts amounting to $2,000 which were deposited at the bank on 30 May have not yet been recorded as a deposit by the bank.

5. On 31 May the bank statement showed a dishonoured cheque of $530 that had been issued by a customer to Interactive Ltd.

Required - Prepare a bank reconciliation for the Interactive Ltd.