Question for Week 6-Bank Reconciliation Statement. The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63 as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following: 1. A deposit of $6,794.62 was received by the bank on August 31 after the bank statement was prepared. 2. Cheques #251 for $1,200 and #260 for $1,333.25 were not presented to the bank for encashment as at August 31, 2020. 3. The bank erroneously debited a cheque drawn Corey’s Construction as $16,000 instead of $1,600. 4. The company’s accountant recorded a $3,500.00 cheque for payment of accounts payables as $35,000 5. The bank credited a deposit of $200 as $2,000 to Corey’s Construction account. 6. A cheque for $13,500 from a customer Ali Woods was returned for insufficient funds. The bank charged $50 for Wood’s NSF cheque. The company’s policy states that the bank charges associated with NSF cheques are to be recovered from the customer. 7. A note was collected by the bank of $21,000 on August 31 which included interest of $1,500. 8. A debit memo from the bank showed service charge amounting to $2,500 as at August 31, 2020.
Question for Week 6-
The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63 as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following:
1. A deposit of $6,794.62 was received by the bank on August 31 after the bank statement was prepared.
2. Cheques #251 for $1,200 and #260 for $1,333.25 were not presented to the bank for encashment as at August 31, 2020.
3. The bank erroneously debited a cheque drawn Corey’s Construction as $16,000 instead of $1,600.
4. The company’s accountant recorded a $3,500.00 cheque for payment of accounts payables as $35,000
5. The bank credited a deposit of $200 as $2,000 to Corey’s Construction account.
6. A cheque for $13,500 from a customer Ali Woods was returned for insufficient funds. The bank charged $50 for Wood’s NSF cheque. The company’s policy states that the bank charges associated with NSF cheques are to be recovered from the customer.
7. A note was collected by the bank of $21,000 on August 31 which included interest of $1,500.
8. A debit memo from the bank showed service charge amounting to $2,500 as at August 31, 2020.
Required:
1. Prepare the necessary
2. Prepare Corey’s Construction Company adjusted
3. Prepare Corey’s Construction Company bank reconciliation statement for August 31, 2020
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