Question - The bank statement of ABC Pte Ltd dated January 31, 20X1 shows a balance of $31,915. The company's cash records on the same date show a balance of $29,842. The following additional information is available:
(i) A cheque issued by the company to its supplier amounting to $583 is still outstanding.
(ii) A non-sufficient funds cheque of $998 from a customer to settle an outstanding debt was returned by the bank with the bank statement.
(iii) The bank charged $30 as service fee.
(iv) Interest income earned on the company's average cash balance at bank was $458.
(v) A cheque deposit of $420 made on January 31 does not appear on bank statement.
(vi) The bank collected a note receivable of $2,300 and an income interest of $180 on behalf of the company.
Required:
(a) Prepare the bank reconciliation statement using the above information.
(b) Prepare the necessary journal entries. Journal narratives are not required.