Reference no: EM133061175

Question - Masters Company's bank statement showed a balance of $43,000 as at 30th November 2021. The book showed a cash balance $44,000 as at 30" November 2021. As an accountant, you need to prepare the bank reconciliation at 30th November, using the following information:

1. The company's new accounting clerk erroneously recorded $7,200 as salary expenses paid to the part-time tea lady, but the check amount should be $71,100.

2. A check $400 issued by a customer, Small Ltd., deposited previously was debited by bank because of non-sufficient fund.

3. The company had a total check deposit of $34,000 during November, but the bank showed only deposits of $46,000. No deposit-in-transit was carried forward from last month.

4. Hi-fi Ltd. directly deposited $27,900 to the company's bank account to settle a note receivable {Ignore interest}.

5. Examination of the paid checks revealed that two checks amounting to $15,200 had not been paid by the bank.

6. Service charge of $800 was debited by the bank.

Required -

(a) Prepare a bank reconciliation statement as at 30th November 2021. Show your workings.

(b) Prepare the journal entries that should be made in the book of Masters Company as a result of the above bank reconciliation.