The assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable...
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Accounting
The assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing a proper reconciliation falls upon you.
Aqua Company
Bank Reconciliation
May 31, 2020
Balance per books May 31
$
9,525
Add:
Electronic Fund Transfer
$
1,075
Deposit in transit
2,470
3,545
$
13,070
Deduct:
Bank charges
$
15
NSF cheque, Rhonda Teal
510
Outstanding cheques
1,815
Error in cheque #78: correctly issued and processed by the bank for $772, but incorrectly recorded in the books as $731 (Accounts PayableDelta Co.)
41
2,381
Indicated bank balance
$
10,689
Balance per bank statement
9,379
Discrepancy
$
1,310
Required: 1. Prepare a proper bank reconciliation showing the true Cash balance. 2. Prepare the necessary journal entries.
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