Your assistant prepared the following bank reconciliationstatement. It appears that the statement is unacceptable and thetask of preparing a proper reconciliation falls upon you.
| Brandon Company |
| Bank Reconciliation |
| May 31, 2017 |
| Balance per books May 31 | | | $9,585 |
| Add: | | | |
| Electronic Fund Transfer | $1,111 | | |
| Deposit in transit | 2,506 | | 3,617 |
| | | |
| | | $13,202 |
| | | |
| Deduct: | | | |
| Bank charges | $27 | | |
| NSF cheque, Rhonda Teal | 534 | | |
| Outstanding cheques | 1,851 | | |
Error in cheque #78: correctlyissued and processed
by the bank for $796, butincorrectly recorded
in the books as $743 (AccountsPayable–Delta Co.) | 53 | | 2,465 |
| | | |
| Indicated bank balance | | | $10,737 |
| Balance per bank statement | | | 9,427 |
| | | |
| Discrepancy | | | $1,310 |
| | | |
|
Required:
1. Prepare a proper bank reconciliation showing the trueCash balance.
BRANDON COMPANY Bank Reconciliation May 31, 2017
Company's Books Bank Statement Balance per books Balance perbank Add Add Deduct Deduct
1
Record to collection of EFT.
2
Record to error, bank service charges, and NSF cheque.
2. Prepare the necessary journal entries.(If no entry is required for a transaction/event, select"No journal entry required" in the first accountfield.)
