Reference no: EM132255755

Question - The cash account of Ayayai Corp. shows a ledger balance of $3,954.85 on June 30, 2017. The bank statement as at that date indicates a balance of $4,070. When the statement was compared with the cash records, the following facts were determined:

1. There were bank service charges for June of $29.

2. A bank memo stated that Bao Dai's note for $898 and interest of $31 had been collected on June 29, and the bank had made a charge of $6.50 on the collection. (No entry had been made on Ayayai's books when Bao Dai's note was sent to the bank for collection.)

3. Receipts for June 30 of $2,880 were not deposited until July 2.

4. Cheques outstanding on June 30 totalled $2,043.65.

5. On June 29, the bank had charged Ayayai Corp.'s account for a customer's uncollectible cheque amounting to $430.20.

6. A customer's cheque for $70 had been entered as $50 in the cash receipts journal by Ayayai Corp. on June 15 as a collection on account.

7. Cheque no. 742 in the amount of $495 had been entered in the cashbook as $459, and cheque no. 747 in the amount of $53.80 had been entered as $538. Both cheques were issued to pay for cash purchases of equipment.

8. In May 2017, the bank had charged a $28.50 Blue Corp. cheque against the Ayayai Corp. account. The June bank statement indicated that the bank had reversed this charge and corrected its error.

Required -

1. Prepare a bank reconciliation dated June 30, 2017, proceeding to a correct cash balance.

2. Prepare any entries that are needed to make the book's correct and complete.