Seattle Coffee Limited's bank statement for the month ofNovember 30, 2020 showed a balance per bank of $7,000. Thecompany's general ledger Cash account showed a balance of $5,904 atNovember 30, 2020. Other information is as follows:
1. Cash receipts for November 30recorded on the company's books were $5,200, but this amount doesnot appear on the bank statement.
2. The bank statement shows a Bankcharge fee for $40 for cheque printing charges.
3. Cheque #119 payable in the amountof $248 to Holt Corporation was recorded in the general journal for$284 and cleared the bank for $248. The correct amount of Cheque#119 is $248. The bookkeeper made an error.
4. The total amount of chequesoutstanding at November 30 was $5,800.
5. The bank statement shows and EFTfor Utilities of $200.
6. The bank returned an NSF chequefrom a customer for $560.
7. The bank statement included adeposit for $1,260, which represents the electronic collection ofcustomer accounts which have not yet been recorded on the company’sbooks.
Instructions
(a) Prepare a bank reconciliation forSeattle Coffee Limited at November 30, 2020. (hint: use thetemplate on Moodle to ensure correct formatting)
(b) Prepare any journal entriesnecessary as a result of the bank reconciliation.
