Question

H Q3. (25 marks) The following information is available to Sunwing Company to prepare its bank reconciliation at the end of March 2022: The company recorded a $1,764 cheque in payment of an account payable incorrectly as $1,674. The bank charged the company $45 for monthly standard service charges. A review of cashed cheques returned with the bank statement indicated that cheques amounting to$3,431 had not been cashed by March 31. March 31 general ledger Cash account balance is $12,010. The credit memo enclosed with the bank statement showed that the bank collected a $3,458 note plus interest of $125 on behalf of the company. The debit memo included with the bank statement listed a non-sufficient funds (NSF) cheque for $1,758 plus a $25 NSF bank charge as a result of a nonpayment from its customer, Laurie and Jacob. The bank charged the company $37 for printing new cheques during the month. March 31 cash balance on the bank statement is $16.169. The bank recorded a deposit of $7,600 incorrectly as a deposit of $6,700. Prepare the bank reconciliation for SunWing Company at March 31, 2022. o

Answer 1

Bank Reconciliation
Balance as per bank statement		$ 16,169.00
Add :
Error in recording deposit by bank		$        900.00
		$ 17,069.00
Deduct :
Checks Outstanding		$    3,431.00
Corrected Cash Balance		$ 13,638.00
Balance as per books		$ 12,010.00
Add : Collection of Note and Interest		$    3,583.00
		$ 15,593.00
Deduct :
Error in Recording check	$          90.00
Bank Charges	$        107.00
NSF Check	$    1,758.00	$    1,955.00
Adjusted Cash Balance		$ 13,638.00

If you have any query, kindly comment with your query and please mark thumbs up.