Reference no: EM132998180

The 31 August 2020 bank statement of Brighton Ltd has just arrived from United Bank. To prepare Brighton's bank reconciliation, you gather the following data:

a) Brighton's Cash account shows a balance of $2,900 on 31 August.

b) The bank statement includes two dishonoured cheques from customers: B. Smith, $400 and A. Green, $110.

c) The following cheques are outstanding at 31 August:

Cheque no.         Amount
288                $220
291                  520
294                 580
295                  190

d) Brighton collects from a few customers by EFT. The August bank statement lists a $1,300 EFT deposit for a collection on account.

e) The bank statement includes two special deposits that Brighton hadn't recorded yet: $970 for dividend revenue, and $80 interest revenue which Brighton earned on its bank balance during August.

f) The bank statement lists a $30 bank service charge.

g) On 31 August, Brighton deposited $350, but this deposit doesn't appear on the bank statement.

h) The bank statement includes a $1,000 deduction for a cheque drawn by Interstate Freight Company. Brighton notified the bank of this error.

i) The 31 August bank balance is $4,870.

Problem 1. Record any required adjustments from the bank reconciliation in the Cash at bank account.

Problem 2. Prepare the bank reconciliation statement for Brighton Ltd at 31 August 2020.