In: Accounting
The October 31 bank statement of Spooky Halloween Costumes Ltd. (SHC) has just arrived from TD Bank. To prepare the SHC bank reconciliation, you gather the following data:
SHC’s Cash account shows a balance of $2,256.14 on October 31.
The October 31 bank balance is $4,023.05.
The bank statement shows that SHC earned $38.19 of interest on its bank balance during October. This amount was added to SHC’s bank balance.
SHC pays utilities of $250 and insurance of $100 by EFT.
The following SHC cheques did not clear the bank by October 31:
Cheque # |
Amount |
237 |
$46.10 |
288 |
141.00 |
291 |
578.05 |
293 |
11.87 |
294 |
609.51 |
295 |
8.88 |
296 |
101.63 |
The bank statement includes a donation of $850, electronically deposited to the bank for SHC.
The bank statement lists a $10.50 bank service charge.
On October 31, the SHC treasurer deposited $16.15, which will appear on the November bank statement.
The bank statement includes a $300 deposit that SHC did not make. The bank added $300 to SHC’s account for another company’s deposit.
The bank statement includes two charges for returned cheques from donors. One is a $395 cheque received from a donor with the imprint “Unauthorized Signature.” The other is a nonsufficient funds cheque in the amount of $146.67 received from a client.
Prepare the bank reconciliation for SHC.
Journalize the October 31 transactions needed to update SHC’s Cash account. You do not need to include an explanation for each entry.
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