Record the journal entries to record the adjustments

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Reference no: EM13201102

The following information relates to the business of Peter Jiem, Real Estate as at 31 January 2010.

1. The Bank Statement balance as at 31 January 2010 was $24 663 CR.

2. There was an EFT payment of $680 for insurance made on 15 January 2010.

3. The Bank Service Charge for January was $50. This included $10 for the account fee, $15 for printing cheque books and $25 for the establishment of a temporary overdraft facility.

4. A comparison between the Bank Statement and the Cash Payments Journal reveals that the following cheques have not yet been presented for payment:

Chq no. 1520 $1 940

Chq no. 1522 $ 493

Chq no. 1525 $4 534

5. $4 076 was deposited into the bank account on 30 January 2010. The Bank Statement does not show this deposit.

6. A cheque for $882 was dishonoured by the bank due to insufficient funds in the customer's account.

7. On 13 January 2010 the bank deposited $525 into the business bank account. This amount should have been deposited into the account of Peter Jiem.

8. There were two EFT collections made during the month as follows:

3 January $1 250 - Customer deposit

7 January $2 000 - Collection of Bill Receivable which included $244 of interest

9. Cheque number 1531 has been recorded in the Cash Payments Journal as $8 252. The correct amount, which is the amount that recorded on the Bank Statement is $8 525.

10. The Cash at Bank balance as at 31 January 2010 is $19 882 DR.

Required:

1. Prepare the Bank Reconciliation Statement as at 31 January 2010.

2. Prepare a schedule of the necessary adjustments to give the correct balance of the Cash at Bank account as at 31 January 2010.

Record the journal entries to record the adjustments.

Reference no: EM13201102

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