Question

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.

Answer 1

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Format and naming convention is not there, can be slightly different: Solution: Bank Reconciliation Particulars Total Bank: Balance, Mar.31 $ 16,169 Add: Correction of bank error (7600-6700) $ 900 $ 17,069 Less: Outstanding Checks $ 3,431 Adjusted Bank Balance, March 31 $ 13,638 Books: Balance, Mar.31 $ 12,010 Add: ETF payments (3458+125) $ 3,583 $ 15,593 Less: Service Charges $ 45 Check printing charges $ 37 Cheque error (1764-1674) $ 90 NSF (1758+25) $ 1,783 $ 1,955 Adjusted book Balance, March 31 $ 13,638