P8-4 Preparing a bank reconciliation and the related journal entries [20–25 min] The 31 August 2016 bank statement of Ward's Supacentre has just arrived from United Bank. To prepare Ward's bank reconciliation, you gather the following data: a Ward's Cash account shows a balance of $2900 on 31 August. b The bank statement includes two dishonoured cheques from customers: $400 and $110. c The following Ward cheques are outstanding at 31 August: Cheque no. Amount 237 $ 50 288 170 291 520 294 580 295 50 296 140 d Ward collects from a few customers by EFT. The August bank statement lists a $1300 EFT deposit for a collection on account. e The bank statement includes two special deposits that Ward hasn't recorded yet: $970 for dividend revenue, and $80, the interest revenue Ward earned on its bank balance during August. f The bank statement lists a $30 bank service charge. g On 31 August, Ward deposited $350, but this deposit doesn't appear on the bank statement. h The bank statement includes a $1000 deduction for a cheque drawn by Interstate Freight Company. Ward notified the bank of this error. The 31 August bank balance is $4870. i

P8-4 Preparing a bank reconciliation and the related journal entries [20–25 min] The 31 August 2016 bank statement of Ward's Supacentre has just arrived from United Bank. To prepare Ward's bank reconciliation, you gather the following data: a Ward's Cash account shows a balance of $2900 on 31 August. b The bank statement includes two dishonoured cheques from customers: $400 and $110. c The following Ward cheques are outstanding at 31 August: Cheque no. Amount 237 $ 50 288 170 291 520 294 580 295 50 296 140 d Ward collects from a few customers by EFT. The August bank statement lists a $1300 EFT deposit for a collection on account. e The bank statement includes two special deposits that Ward hasn't recorded yet: $970 for dividend revenue, and $80, the interest revenue Ward earned on its bank balance during August. f The bank statement lists a $30 bank service charge. g On 31 August, Ward deposited $350, but this deposit doesn't appear on the bank statement. h The bank statement includes a $1000 deduction for a cheque drawn by Interstate Freight Company. Ward notified the bank of this error. The 31 August bank balance is $4870. i

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.1AP

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