Reference no: EM132726712

Tidy Gardeners Pty Ltd is closing its books and must pmake a bank reconciliation for the following items:

1. Bank statement contains an ending balance of $300,000 on February 28, 2020, whereas the company's ledger shows an unadjusted ending balance of $320,745
2. Bank statement contains a $125 service charge for operating the account
3. Bank statement contains interest income of $200
4. Tidy Gardeners issued cheques for $20,000 that have not yet been cleared by the bank
5. On Friday 28 February, late in the evening, Tidy Gardeners deposited $50,000 in cash and cheques via a night-safe drop at the bank but this did not appear on the bank statement
6. A cheque for the amount of $470 issued to the soil supplier was misreported in the cash payments journal as $370.
7. A note receivable of $9,800 was collected by the bank.
8. A cheque of $520 deposited by the company bounced.

Problem 1: Prepare the Bank Reconciliation Statement for the month of February 2020