Reference no: EM132795622

Question - The April 30 bank statement of Fancy Fashions has just arrived from Royal Bank of Canada. To prepare the Fancy Fashions bank reconciliation, you gather the following data:

a) The April 30 bank balance is $8,765.43

b) Fancy Fashions Cash account shows a balance of $7,643.98 on April 30

c) The following Fancy Fashions cheques are outstanding at April 30

Cheque No. Amount

616 $314.00

802 47.27

806 126.30

809 810.69

810 22.50

811 84.89

d) The bank statement includes two special deposits: $610.00, which is the amount of dividend revenue the bank collected from IBM on behalf of Fancy Fashions, and $15.42, the interest revenue Fancy Fashions earned on its bank balance during April.

e) The bank statement lists a $6.30 bank service charge.

f) On April 30, the Fancy Fashions bookkeeper deposited $487.22, which will appear on the May bank statement.

g) The bank statement includes a $415.00 deduction for a cheque issued by Far-Out Fashions Company (charged to our account by mistake).

h) The bank statement includes two charges for returned cheques from customers. One is a nonsufficient funds Cheque in the amount of $62.00 received from a customer. The other is a $186.10 cheque received from another customer. It was returned by the customer's bank with the imprint "Unauthorized Signature"

i) A few customers pay monthly bills by EFT. The April bank statement lists an EFT deposit for sale revenue of $247.00

Required - On the following page:

a) Prepare the bank reconciliation for Fancy Fashions at April 30.

b) Journalize the transactions needed to update the Cash account.