Dreyvins Coffee House Limited's bank statement for themonth of November 2022 showed a balance per bank of $7,000. Thecompany's general ledger Cash account showed a balance of $5,659 atNovember 30. Other information is as follows:
1. Cash receipts for November 30 recorded on thecompany's books were $5,200, but this amount does not appear on thebank statement.
2. The bank statement shows a debit memorandumfor $40 for cheque printing charges.
3. Cheque #119 payable in the amount of $248 toHolt Corporation was recorded in the general journal and clearedthe bank for $248. A review of the accounts payable records shows a$36 credit balance in Holt’s account and that the total paymentshould have been for $284.
4. The total amount of cheques outstanding atNovember 30 was $5,800.
5. Cheque #138 was correctly written and paid bythe bank for $409. The cash payment journal reflects an entry forCheque #138 as a debit to Accounts Payable and a credit to Cash for$490.
6. The bank returned an NSF cheque from acustomer for $560.
7. The bank statement included a deposit for$1,260, which represents the electronic collection of customeraccounts which have not yet been recorded on the company’sbooks.
Instructions
(a) Prepare a bank reconciliation for Seattle CoffeeLimited at November 30, 2022.
(b) Prepare any journal entries necessary as a resultof the bank reconciliation.
