Your assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and...

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Accounting

Your assistant prepared the following bank reconciliationstatement. It appears that the statement is unacceptable and thetask of preparing a proper reconciliation falls upon you.
Brandon Company
Bank Reconciliation
May 31, 2017
  Balance per books May 31 $9,585
  Add:
     Electronic Fund Transfer $1,111
     Deposit in transit 2,506 3,617
$13,202
  Deduct:
     Bank charges $27
     NSF cheque, Rhonda Teal 534
     Outstanding cheques 1,851
     Error in cheque #78: correctlyissued and processed
      by the bank for $796, butincorrectly recorded
      in the books as $743 (AccountsPayable–Delta Co.) 53 2,465
  Indicated bank balance $10,737
  Balance per bank statement 9,427
  Discrepancy $1,310

Required:
1. Prepare a proper bank reconciliation showing the trueCash balance.
BRANDON COMPANY Bank Reconciliation May 31, 2017
Company's Books Bank Statement Balance per books Balance perbank Add Add Deduct Deduct
1
Record to collection of EFT.
2
Record to error, bank service charges, and NSF cheque.

2. Prepare the necessary journal entries.(If no entry is required for a transaction/event, select"No journal entry required" in the first accountfield.)

Answer & Explanation Solved by verified expert

4.0 Ratings (820 Votes)

1 Bank Reconciliation May 31 2017 Cash Balance as per Bank Statement 9427 Add Deposit in Transit 2506 11933 Less Oustanding Cheque 1851 Adjusted Cash Balance as per See Answer

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Brandon Company
Bank Reconciliation
May 31, 2017
Balance per books May 31		$9,585
Add:
Electronic Fund Transfer	$1,111
Deposit in transit	2,506	3,617

		$13,202

Deduct:
Bank charges	$27
NSF cheque, Rhonda Teal	534
Outstanding cheques	1,851
Error in cheque #78: correctlyissued and processed by the bank for $796, butincorrectly recorded in the books as $743 (AccountsPayable–Delta Co.)	53	2,465

Indicated bank balance		$10,737
Balance per bank statement		9,427

Discrepancy		$1,310