Reference no: EM132778989
On July 31, Sheridan Ltd. had a cash balance of $11,910 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $20,068. A comparison of the bank statement with the Cash account revealed the following:
1.The bank statement included service charges and debit and credit card processing fees of $102.
2.The bank statement included electronic collections from customers on account totalling $4,840. Sheridan had not recorded the EFT.
3.A deposit of $2,840 made by another company was incorrectly added to Sheridan's account by the Caisse Populaire.
4.Salaries of $3,840 were paid electronically during the month. The company has already recorded these.
5.Cheques outstanding on June 30 totalled $2,550. Of these, $1,970 worth cleared the bank in July. All cheques written in July cleared the bank in July.
Problem 1: Prepare any journal entries required from the reconciliation.