Reference no: EM132617439

It is August 31st and Mona is helping her friend, Angela, who is struggling to make sense of things at month-end. Here are some points Angela is confused about.

1. Two of Angela's customers paid their owing balances today. She collected $200 from Jean and $400 from Bobby. She has not made any journal entries today and is planning to visit the bank after business hours.

2. On July 18th, Angela gave her customer a refund cheque of $75. However, she hasn't seen the amount withdrawn from her bank account. There were two additional cheques in August for $240 and $177. Angela noticed the $240 amount was withdrawn earlier today. She isn't worried about the $177 amount since she just gave her supplier that cheque yesterday night.

3. A customer gave Angela a $35 cheque on July 30th (she deposited it the same day). On August 4th, Angela noticed that the $35 had been withdrawn from her account and a $5 fee relating to the cheque had been charged to her account. The customer apologized and sent an e-transfer of $35 earlier today. Mona asks Angela if this has been journalized and Angela responds that the last journal entry relating to this customer was on July 30th.

Problem 1: How should Mona treat each of the points? If journal entries are needed, show what they look like. Also, discuss why a bank reconciliation is important for Mona.