You are given the following information for River Adventures Company 1 answer below »
You are given the following information for River Adventures Company:
RIVER ADVENTURES COMPANY
Bank Reconciliation
April 30, 2008
Cash balance per bank $9,009
Add Deposits in transit 846
9,855
Less: Outstanding cheques
#526 $1,358
#533 279
#541 363
#555 79 2,079
Adjusted cash balance per bank $7,776
The adjusted cash balance per bank agreed with the cash balance per books at April 30, 2008. The May bank statement showed the following:
RIVER ADVENTURES COMPANY
Bank Statement
May 31, 2008
Date
Cheques and Other Debits
Deposits
Number
Amount
Amount
BalanceApr. 30
May 3
4
6
6
10
10
13
13
14
18
18
19
21
25
26
28
31526
541
556
557
559
561
562
563
564
565
NSF
SC$1,358
363
223
1,800
1,650
799
2,045
2,487
603
1,033
440
25$ 846
1,250
980
426
1,650
222
980
1,771
$9,009
8,497
8,134
7,911
7,361
8,341
6,691
7,117
8,767
7,968
5,923
6,145
3,658
3,055
2,022
3,002
4,333
4,308
Additional information from the bank statement: The deposit of $1,650 on May 13 is an electronic transfer from a customer in payment of its account. The amount includes $35 of interest, which River Adventures Company had not previously accrued.The NSF for $440 is for a $425 cheque from a customer, Ralph King, in payment of his account, plus a $15 processing fee.SC represents bank service charges for the month.The bank made an error when processing cheque #564. The company also made two errors in the month. All cheques were written to pay accounts payable, all cash receipts were collections of accounts receivable.
Instructions
(a) Calculate the unadjusted cash balance in River Adventures general ledger at May 31.
(b) Prepare bank reconciliation and the necessary adjusting journal entries at May 31.
