Prepare bank reconciliation and related entries. (LO 4) AP
You are given the following information for River Adventures Company:
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RIVER ADVENTURES COMPANY
Bank Reconciliation
April 30, 2017
|
|
Cash balance per bank
|
|
$9,009
|
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Add: Deposits in transit
|
|
846
|
|
|
|
9,855
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|
Less: Outstanding cheques
|
|
|
|
#526
|
$1,358
|
|
|
#533
|
279
|
|
|
#541
|
363
|
|
|
#555
|
79
|
2,079
|
|
Adjusted cash balance per bank
|
|
$7,776
|
The unadjusted cash balance at May 31 was $1,075. The May bank statement showed the following:
|
RIVER ADVENTURES COMPANY
Bank Statement
May 31, 2017
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|
|
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Cheques and Other Debits
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|
|
|
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Date
|
Number
|
Amount
|
Deposits
|
Amount
|
|
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Apr. 30
|
|
|
|
$9,009
|
|
|
May 1
|
526
|
$1,358
|
$ 846
|
8,497
|
|
|
2
|
541
|
363
|
|
8,134
|
|
|
6
|
556
|
223
|
|
7,911
|
|
|
6
|
557
|
1,800
|
1,250
|
7,361
|
|
|
9
|
|
|
980
|
8,341
|
|
|
12
|
559
|
1,650
|
|
6,691
|
|
|
13
|
|
|
426
|
7,117
|
|
|
13
|
|
|
1,650
|
8,767
|
|
|
14
|
561
|
799
|
|
7,968
|
|
|
16
|
562
|
2,045
|
|
5,923
|
|
|
20
|
|
|
222
|
6,145
|
|
|
21
|
563
|
2,487
|
|
3,658
|
|
|
22
|
564
|
603
|
|
3,055
|
|
|
23
|
565
|
1,033
|
|
2,022
|
|
|
27
|
|
|
980
|
3,002
|
|
|
28
|
NSF
|
440
|
1,771
|
4,333
|
|
|
31
|
SC
|
25
|
|
4,308
|
|
| |
|
|
|
Additional information from the bank statement:
1. The deposit of $1,650 on May 13 is an electronic transfer from a customer in payment of its account. The amount includes $35 of interest, which River Adventures Company had not previously accrued.
2. The NSF for $440 is for a $425 cheque from a customer, Ralph King, in payment of his account, plus a $15 processing fee.
3. SC represents bank service charges for the month.
4. The bank made an error when processing cheque #564. The company also made two errors in the month. All cheques were written to pay accounts payable; all cash receipts were collections of accounts receivable.
The company's recorded cash payments and cash receipts for the month were as follows:
|
Cash Receipts
|
|
Date
|
Amount
|
|
May 5
|
$1,250
|
|
8
|
980
|
|
12
|
426
|
|
18
|
222
|
|
25
|
890
|
|
28
|
1,771
|
|
31
|
1,286
|
|
Total
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$6,825
|
|
Cash Payments
|
|
Date
|
Cheque No.
|
Amount
|
|
May 2
|
556
|
$ 223
|
|
5
|
557
|
1,800
|
|
7
|
558
|
943
|
|
7
|
559
|
1,650
|
|
8
|
560
|
890
|
|
12
|
561
|
799
|
|
15
|
562
|
2,045
|
|
16
|
563
|
2,887
|
|
20
|
564
|
306
|
|
23
|
565
|
1,033
|
|
30
|
566
|
950
|
|
Total
|
|
$13,526
|
Instructions
(a) Prepare a bank reconciliation.
(b) Prepare the necessary adjusting journal entries at May 31.