Problem -
The 31 August bank statement of Ward's Supercentre has just arrived from United Bank. To prepare Ward's bank reconciliation, you gather the following data:
- Ward's Cash at Bank account shows a balance of $3,530 on 31 August.
- The bank statement includes two dishonoured cheques from customers:
- $395 and $147.
- Ward's pays rent expenses ($750) and insurance expenses ($290) each
- month by EFT.
- The bank statement shows that Ward earned $18 of interest on its bank
- balance during August.
- The bank statement shows a payment of $1,230, which was incorrectly
- entered into the General Ledger (Cash at Bank) for $1,320.
- The bank statement lists a $10 bank service charge.
- On 31 August, Ward deposited $316, but this deposit does not appear on
- the bank statement.
- The Ward cheques below are outstanding:
- Cheque
# 237 288 291
$ 49 $141 $578
- The 31 August bank balance (as per bank statement) is $2,498.
Required: Prepare the bank reconciliation for Ward's Supercentre at 31 August.
*put gross margin and net profit after tax in the income statement.