Answer:
Prepare Bank Reconciliation Statement
Balance at Bank as per Cash Book - Up to date $7,972
Less Lodgements not yet credited : ($1,300)
Add Unpresented Cheques $591
Balance as per Bank Statement $7,263
Adjusting Entries
J1
Bank service charge $28 (debit)
Cash $28 (credit)
J2
Cash $700 (debit)
Note - Receivable Crane $700 (credit)
J3
Cash $36 (debit)
Interest Income $36 (credit)
J4
Service Fee $20 (debit)
Cash $20 (credit)
Explanation:
First Update the Cash Book as follows:
<u>Debit :</u>
Cash balance $7,284
Crane $700
Interest $36
Totals $8,020
<u>Credit:</u>
Bank service charge $28
Crane : fee $20
Balance - Up to date $7,972
Totals $8,020
Then, Prepare Bank Reconciliation Statement
Balance at Bank as per Cash Book - Up to date $7,972
Less Lodgements not yet credited : ($1,300)
Add Unpresented Cheques $591
Balance as per Bank Statement $7,263
Adjusting Entries
J1
Bank service charge $28 (debit)
Cash $28 (credit)
J2
Cash $700 (debit)
Note - Receivable Crane $700 (credit)
J3
Cash $36 (debit)
Interest Income $36 (credit)
J4
Service Fee $20 (debit)
Cash $20 (credit)
