on may 31 2016 jb games ltd received its bank statement from the east coast savings 4372391

On May 31, 2016, JB Games Ltd. received its bank statement from the East Coast Savings Bank showing that JB had a balance of $12,200. The company’s general ledger showed cash balance of $8,600 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. A cheque from one of JB’s customers in the amount of $1,120 that had been deposited during the last week of May was returned with the bank statement as NSF. 2. Bank service charges for the month were $55. 3. The company had written and mailed out cheques with a value of $4,235 that had not yet cleared the bank. 4. Cheque #791, which was a payment for advertising expenses of $230, was incorrectly recorded in the general ledger as $320. 5. During the month, the bank collected a $2,000 note receivable plus the outstanding interest on behalf of JB. The note was interest-bearing at 5% per annum and had been outstanding for one year. 6. The cash receipts for May 31 amounted to $1,650 and had been deposited in the night drop slot at the bank on the evening of May 31. These were not reflected on the bank statement for May. Required: a. Prepare the bank reconciliation for JB at May 31, 2016. b. Prepare any journal entries necessary as a result of the bank reconciliation prepared in part “a.” View Solution:
On May 31 2016 JB Games Ltd received its bank

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