Sandra Spark is the owner of Spark Images Ltd. (SIL), a graphic design company. She is trying to prepare a bank reconciliation for SIL's bank account as at February 29, 2020. A review of SIL's bank statement and accounting records showed the following: . • . The accounting records showed a balance in the Cash account of $18,680. The bank statement showed that SIL began the month with a cash balance of $19.400 and ended with a cash balance of $22,700. Sandra had made a mistake recording an insurance payment. She had recorded it in the general ledger as $850 rather than the correct amount of $580 (which was the amount of the cheque sent to the insurance company). Two cheques totalling $4,700 that had been written and mailed by SIL had not been cashed. Bank service charges for the month were $80. A cheque for $1,780 that had been part of SIL's deposit on February 26, 2020, was not honoured by the bank because the client had insufficient funds. Sandra made a deposit for $1,420 through the night deposit slot at the bank late on the evening of February 28, 2020. One of SIL's customers had paid their account using an electronic funds transfer. The payment was for $2,330,

Sandra Spark is the owner of Spark Images Ltd. (SIL), a graphic design company. She is trying to prepare a bank reconciliation for SIL's bank account as at February 29, 2020. A review of SIL's bank statement and accounting records showed the following: . • . The accounting records showed a balance in the Cash account of $18,680. The bank statement showed that SIL began the month with a cash balance of $19.400 and ended with a cash balance of $22,700. Sandra had made a mistake recording an insurance payment. She had recorded it in the general ledger as $850 rather than the correct amount of $580 (which was the amount of the cheque sent to the insurance company). Two cheques totalling $4,700 that had been written and mailed by SIL had not been cashed. Bank service charges for the month were $80. A cheque for $1,780 that had been part of SIL's deposit on February 26, 2020, was not honoured by the bank because the client had insufficient funds. Sandra made a deposit for $1,420 through the night deposit slot at the bank late on the evening of February 28, 2020. One of SIL's customers had paid their account using an electronic funds transfer. The payment was for $2,330,

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 2SEQ

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