Reference no: EM131565338

Problem -

The 31 August bank statement of Ward's Supercentre has just arrived from United Bank. To prepare Ward's bank reconciliation, you gather the following data:

• Ward's Cash at Bank account shows a balance of $3,530 on 31 August.
• The bank statement includes two dishonoured cheques from customers:
• $395 and $147.
• Ward's pays rent expenses ($750) and insurance expenses ($290) each
• month by EFT.
• The bank statement shows that Ward earned $18 of interest on its bank
• balance during August.
• The bank statement shows a payment of $1,230, which was incorrectly
• entered into the General Ledger (Cash at Bank) for $1,320.
• The bank statement lists a $10 bank service charge.
• On 31 August, Ward deposited $316, but this deposit does not appear on
• the bank statement.
• The Ward cheques below are outstanding:
• Cheque

# 237 288 291

$ 49 $141 $578

• The 31 August bank balance (as per bank statement) is $2,498.

Required: Prepare the bank reconciliation for Ward's Supercentre at 31 August.

*put gross margin and net profit after tax in the income statement.