P7-5A On July 31, Beaupré Ltd. had an unadjusted cash balance of $14,786. The ba

Question

P7-5A On July 31, Beaupré Ltd. had an unadjusted cash balance of $14,786. The bank statement from the Caisse p on that date showed a balance of $21.062. A comparison of the bank statement with the Cash account revealed the folosta 1. The bank statement included service charges of $100. 2. The bank statement included electronic collections from customers on account totalling $4,110. Beaupré had Beaupré had not recorded the EFT 3. A deposit of $1,800 made by another company was incorrectly added to Beaupré's account by the 4. Salaries of $4,000 were paid electronically during the month. The company has already recorded these. Cheques outstanding on June 30 totalled $1.844. of these, $1,378 worth cleared the bank in July, All cheques write in July cleared the bank in July Instructions (a) Prepare the bank reconciliation at July 31. (b) Prepare any adjusting journal entries required from the reconciliation.

Explanation / Answer

SOLUTION

(1) Bank reconciliation statement

(2) Journal Entries-

Particulars Amount ($) Particulars Amount ($) Cash balance per bank statement 21,062 Cash balance as per books 14,786 Less: Outstanding cheques ($1,844 - $1,378) (466) Add: EFT collections 4,110   Deposit incorrectly posted by bank (1,800) Less: Bank service charges (100) Adjusted bank balance 18,796 Adjusted book balance 18,796

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