Reference no: EM133171883
Question - The 31 August 2021 bank statement of Bach Ltd has just arrived from United Bank. To prepare Bach's bank reconciliation, you gather the following data:
a) Bach's Cash account has 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 appear in the cash payments journal of Bach but have not yet been cleared by the bank at 31 August:
|
Cheque no.
|
Amount
|
|
237
|
$190
|
|
288
|
170
|
|
291
|
520
|
|
294
|
630
|
d) Bach 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 Bach hasn't recorded yet: $970 for dividend revenue, and $80 interest revenue which Bach earned on its bank balance during August.
f) The bank statement lists a $30 bank service charge and a $15 excess transaction fee.
g) On 31 August, Bach deposited $350 from a customer, this deposit hasn't yet appeared on the bank statement.
h) The bank statement includes a $1,000 deduction for a cheque drawn by Interstate Freight Company, a business unrelated to Bach. Bach notified the bank of this error.
i) The 31 August balance on the bank statement is $4,855 Cr.
Required - Record any required adjustments from the bank reconciliation in the Cash at bank account. Total and balance the account.