Question

Ayayai Spa shows a general ledger balance for the Cash account of $4,181.35 on June 30 and the bank statement as of that date indicates a balance of $4,135.00. When the statement was compared with the cash records, the following facts were determined:

1.		There were bank service charges for June of $29.00.
2.		A bank memo stated that Bao Dai’s note for $918.00 and interest of $36.00 had been collected on June 29, and the bank had charged $4.50 for the collection. Any interest revenue has not been accrued.
3.		Deposits in transit June 30 were $2,965.00.
4.		Cheques outstanding on June 30 totalled $2,060.05.
5.		On June 29, the bank had charged Ayayai Spa’s account for a customer’s NSF cheque amounting to $528.20.
6.		A customer’s cheque received as a payment on account of $96.00 had been entered as $73.00 in the cash receipts journal by Ayayai Spa on June 15.
7.		Cheque no. 742 in the amount of $508.00 had been entered in the books as $446.00, and cheque no. 747 in the amount of $48.70 had been entered as $554.00. Both cheques were issued as payments on account.
8.		In May, the bank had charged a $30.50 Wella Spa cheque against the Ayayai Spa account. The June bank statement indicated that the bank had reversed this charge and corrected its error.

(a) Prepare a bank reconciliation at June 30

Answer 1