Question

Question 7-10 marks Lakeside Company's monthly bank statoment for September 30, 2018 showed a balanDe of $7.000 The companys cash account in the general ledger had a balance of $5,450 at September 3d- Other information is as follows (1) Cash receipts for September 30 recorded on the compan's books were $5,200 but this amount does not appear on the bank statement (2) The bank statement shows a debit memorandum 1for $50 for cheque printing charges (3) Cheque No. 119 payable to Lynch Company was recorded in the cash payments joumal for S248 and cleared the bank for $248. A review of the accounts pavable subsidiary edger shows a S36 credt balance in the account of Lynch Company and that the payment to Lynch should heve been for 24 The total amount of cheques still outstanding at September 30 amounted to S6.00 (4) (5) Cheque No. 138 was corectly written and paid by the bank for S400 The general ledger cah wocoune rocts an entry for Cheque No. 138 as a debit to Accounts Payable and a credt to Cash for $490. The bank retuned an NSF chequo from a customer, named Hedda Letuss, for S550 (b) The bank statement included a credit memorandum for $1,260 which represents coloction of a customer's note by the bank for the company. The principal amount of the note was $1,200 and interost was $80. Intorest has not been acorued. The bank charged a $20 note collection tee (7) Required Prepare a bank reconciliation statement for Lakeside Company at September 30, 2018 (a) Prepare any adjusting entries necessary as a result of the bank roconciliation (b)

Answer 1

ro Bark Reconcilation Statement Balance As per Pasibook 7000 Addo 1) Cash receipt for Sep 30 for 5200 5200 leut does not appear in bark 2) Dedurt chequé printing charge 50 6 Returmed NSF cheque for 550 5505800 Less s cheque No. 119 wrong recorded 4 cheque outstanding for 6000 (6000) 7 Note collected by bank Balance As per ledger (1260) (7 341) 5459