90.2K

Verified Solution

Link Copied!

Master Electronics had a computer failure on April 1, 2020, which resulted in the loss of data, including the balance of its Cash account and its bank reconciliation from March 31, 2020. The accountant, Bill Danila, has been able obtain the following information from the records of the company and its bank. (Click the icon to view records a-b.) (Click the icon to view records c-9.) Required 1. Prepare a bank reconciliation as of April 30, 2020, including the calculation of the book balance of April 30, 2020 2. Prepare all journal entries that would be required by the bank reconciliation Records a-b. Records c-9 lling the calculation of the book balance of April 30, 2020. 2. Prepare all journal entries that would be required by the bank reconciliation. Records a-b. C a. An examination showed that two cheques (#244 for $350.00 and #266 for $644.00) had not been cashed as of April 1. Danila recalled that there was only one deposit in transit on the March 31 bank reconciliation but was unable to recall the amount. b. The cash receipts and cash payments journals contained the following entries for April 2020. Cash Receipts: Cash Payments: Amounts Amount Cheque# 275 $ 920.00 $ 310.00 1,820.00 276 480.00 3,800.00 277 525.00 2,010.00 278 890.00 760.00 279 620.00 $ 9,310.00 280 4,500.00 281 void 282 540.00 283 1,800.00 $ 9,665.00 d. The e. The Print Done Records c-g. been 31 c. The company's bank provided the following statement as of April 30, 2020. Date 480.00 Cheques and Other Debits Deposits and Other Credits Balance Apr. 1 #276 2,500.00 6,900.00 2. #266 644.00 6,256.00 5 #277 525.00 5,731.00 8 920.00 6.651.00 14 #275 310.00 1,600.00 7,941.00 17 EFT 570.00 7,371.00 19 EFT 440.00 7,811.00 22 #279 620.00 1,820.00 9,011.00 22 #280 4,590.00 EFT 1,196.00 5,617.00 24 EFT 505.00 6,122.00 27 NSF 890.00 3,800.00 9,032.00 28 8,992.00 SC 40.00 30 9,202.00 #283 1,800.00 2.010.00 d. The deposit made on April 14 was for the collection of a note receivable ($1,540.00) plus interest. e. The electronic funds transfers (EFTs) had not yet been recorded by Master Electronics because the * Records c-g. - ad not been March 31 I 2020. 8 920.00 6,651.00 14 #275 310.00 1,600.00 7,941.00 17 EFT 570.00 7,371.00 19 EFT 440.00 7,811.00 22 #279 620.00 1,820.00 9,011.00 22 #280 4,590.00 EFT 1,196.00 5,617.00 24 EFT 505.00 6,122.00 27 NSF 890.00 3,800.00 9,032.00 28 SC 40.00 8,992.00 30 #283 1,800.00 2,010.00 9.202.00 d. The deposit made on April 14 was for the collection of a note receivable ($1,540.00) plus interest. e. The electronic funds transfers (EFTs) had not yet been recorded by Master Electronics because the bank statement was the first notification of them. The April 17 EFT was for the monthly payment on an insurance policy for Master Electronics. The April 19 and 24 EFTs were collections on accounts receivable. The April 22 EFT was in error-the transfer should have been to Master Horse Farm. f. The NSF cheque on April 27 was received from a customer as payment for electronics purchased for $890.00 g. Cheque #280 was correctly written for $4,590.00 for the purchase of inventory (assume a periodic system) but incorrectly recorded by the cash payments clerk. Master Electronics had a computer failure on April 1, 2020, which resulted in the loss of data, including the balance of its Cash account and its bank reconciliation from March 31, 2020. The accountant, Bill Danila, has been able obtain the following information from the records of the company and its bank. (Click the icon to view records a-b.) (Click the icon to view records c-9.) Required 1. Prepare a bank reconciliation as of April 30, 2020, including the calculation of the book balance of April 30, 2020 2. Prepare all journal entries that would be required by the bank reconciliation Records a-b. Records c-9 lling the calculation of the book balance of April 30, 2020. 2. Prepare all journal entries that would be required by the bank reconciliation. Records a-b. C a. An examination showed that two cheques (#244 for $350.00 and #266 for $644.00) had not been cashed as of April 1. Danila recalled that there was only one deposit in transit on the March 31 bank reconciliation but was unable to recall the amount. b. The cash receipts and cash payments journals contained the following entries for April 2020. Cash Receipts: Cash Payments: Amounts Amount Cheque# 275 $ 920.00 $ 310.00 1,820.00 276 480.00 3,800.00 277 525.00 2,010.00 278 890.00 760.00 279 620.00 $ 9,310.00 280 4,500.00 281 void 282 540.00 283 1,800.00 $ 9,665.00 d. The e. The Print Done Records c-g. been 31 c. The company's bank provided the following statement as of April 30, 2020. Date 480.00 Cheques and Other Debits Deposits and Other Credits Balance Apr. 1 #276 2,500.00 6,900.00 2. #266 644.00 6,256.00 5 #277 525.00 5,731.00 8 920.00 6.651.00 14 #275 310.00 1,600.00 7,941.00 17 EFT 570.00 7,371.00 19 EFT 440.00 7,811.00 22 #279 620.00 1,820.00 9,011.00 22 #280 4,590.00 EFT 1,196.00 5,617.00 24 EFT 505.00 6,122.00 27 NSF 890.00 3,800.00 9,032.00 28 8,992.00 SC 40.00 30 9,202.00 #283 1,800.00 2.010.00 d. The deposit made on April 14 was for the collection of a note receivable ($1,540.00) plus interest. e. The electronic funds transfers (EFTs) had not yet been recorded by Master Electronics because the * Records c-g. - ad not been March 31 I 2020. 8 920.00 6,651.00 14 #275 310.00 1,600.00 7,941.00 17 EFT 570.00 7,371.00 19 EFT 440.00 7,811.00 22 #279 620.00 1,820.00 9,011.00 22 #280 4,590.00 EFT 1,196.00 5,617.00 24 EFT 505.00 6,122.00 27 NSF 890.00 3,800.00 9,032.00 28 SC 40.00 8,992.00 30 #283 1,800.00 2,010.00 9.202.00 d. The deposit made on April 14 was for the collection of a note receivable ($1,540.00) plus interest. e. The electronic funds transfers (EFTs) had not yet been recorded by Master Electronics because the bank statement was the first notification of them. The April 17 EFT was for the monthly payment on an insurance policy for Master Electronics. The April 19 and 24 EFTs were collections on accounts receivable. The April 22 EFT was in error-the transfer should have been to Master Horse Farm. f. The NSF cheque on April 27 was received from a customer as payment for electronics purchased for $890.00 g. Cheque #280 was correctly written for $4,590.00 for the purchase of inventory (assume a periodic system) but incorrectly recorded by the cash payments clerk

Answer & Explanation Solved by verified expert

See Answer