The assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable...
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Accounting
The assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing a proper reconciliation falls upon you.
| Aqua Company | ||||||
| Bank Reconciliation | ||||||
| May 31, 2020 | ||||||
| Balance per books May 31 | $ | 9,525 | ||||
| Add: | ||||||
| Electronic Fund Transfer | $ | 1,075 | ||||
| Deposit in transit | 2,470 | 3,545 | ||||
| $ | 13,070 | |||||
| Deduct: | ||||||
| Bank charges | $ | 15 | ||||
| NSF cheque, Rhonda Teal | 510 | |||||
| Outstanding cheques | 1,815 | |||||
| Error in cheque #78: correctly issued and processed by the bank for $772, but incorrectly recorded in the books as $731 (Accounts PayableDelta Co.) | 41 | 2,381 | ||||
| Indicated bank balance | $ | 10,689 | ||||
| Balance per bank statement | 9,379 | |||||
| Discrepancy | $ | 1,310 | ||||
Required: 1. Prepare a proper bank reconciliation showing the true Cash balance. 2. Prepare the necessary journal entries.
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