The following information relates to the business of Peter Jiem, Real Estate as at 31 January 2010.
1. The Bank Statement balance as at 31 January 2010 was $24 663 CR.
2. There was an EFT payment of $680 for insurance made on 15 January 2010.
3. The Bank Service Charge for January was $50. This included $10 for the account fee, $15 for printing cheque books and $25 for the establishment of a temporary overdraft facility.
4. A comparison between the Bank Statement and the Cash Payments Journal reveals that the following cheques have not yet been presented for payment:
Chq no. 1520 $1 940
Chq no. 1522 $ 493
Chq no. 1525 $4 534
5. $4 076 was deposited into the bank account on 30 January 2010. The Bank Statement does not show this deposit.
6. A cheque for $882 was dishonoured by the bank due to insufficient funds in the customer's account.
7. On 13 January 2010 the bank deposited $525 into the business bank account. This amount should have been deposited into the account of Peter Jiem.
8. There were two EFT collections made during the month as follows:
3 January $1 250 - Customer deposit
7 January $2 000 - Collection of Bill Receivable which included $244 of interest
9. Cheque number 1531 has been recorded in the Cash Payments Journal as $8 252. The correct amount, which is the amount that recorded on the Bank Statement is $8 525.
10. The Cash at Bank balance as at 31 January 2010 is $19 882 DR.
Required:
1. Prepare the Bank Reconciliation Statement as at 31 January 2010.
2. Prepare a schedule of the necessary adjustments to give the correct balance of the Cash at Bank account as at 31 January 2010.
Record the journal entries to record the adjustments.