Test 2_sem1_06 - Question 1 Bank Reconciliations (17 marks)...

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Question 1 – Bank Reconciliations (17 marks) Pacifica Enterprise received its Bank Statement for January 2006, which showed an ending balance of $6,250.50 (Cr). The firm’s Bank Ledger account on 31 January 2006, before the posting of the Cash Journals, has a credit balance of $2,307.20. The balances to date in the Cash Receipts and Cash Payments Journals are $14,226.40 and $12,021.45, respectively. The following items were identified during the reconciliation process: 1. Pacifica Enterprise’s Bank Statement was direct credited with $3,200.00, from ABC Supplies, a credit customer. This amount had not been recorded in the books of Pacifica Enterprises. 2. The bank debited Pacifica Enterprise’s account with the December 2005 bank charges of $27.00. This has not been recorded by Pacifica Enterprise. 3. A cheque (#10087) for $430.00, for office supplies, was incorrectly recorded in the books of Pacifica Enterprise as $43.00. 4. Cheques issued but not presented to the bank for payment at 31 January 2006 total $5,742.60. 5. The Bank Statement shows a deposit of $620.00, which was wrongly credited to Pacifica Enterprise’s account by the bank. This error will be corrected by the bank with a debit entry, which will be shown in the February Bank Statement. 6. A cheque for $370.00 is shown as dishonoured in the January Bank Statement. As yet this has not been adjusted in Pacifica Enterprise’s records. 7. Pacifica Enterprise was charged interest for December of $18.30. Although this amount is shown in the Bank Statement it has not been recorded in Pacifica Enterprise’s records. 8. A cash deposit was made at the bank on 31 January of approximately $2,400. It has not yet appeared on the Bank Statement. Unfortunately the deposit slip for this transaction has been lost and the exact amount is unknown. It has been recorded in the cash receipts journal but this journal is not immediately available in order to check this amount. REQUIRED: a) Prepare the Bank Ledger account as it would appear in the accounting records of Pacifica Enterprise after posting the updated Cash Journals. Use the 3-column ledger format . (8 marks) b) Prepare the Bank Reconciliation Statement for Pacifica Enterprise at 31 January 2006. As part of this process you will need to determine an accurate figure for the cash deposit which was made on 31 January. (5
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This note was uploaded on 11/02/2008 for the course BUSINESS 5206 taught by Professor Covney during the Fall '05 term at Unitec.

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Test 2_sem1_06 - Question 1 Bank Reconciliations (17 marks)...

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