ACCY112: Spring 2012 e-learning question 1 Coconut Company received its bank statement for the month of May

2010 showing a credit balance of $4,188.30 as at 31 May 2010. The cash balance on the companys books at 1 May 2010 was $5,176.40 (debit). The progressive totals of the Cash Receipts Journal and the Cash Payments Journal before considering items 1 to 5 below were $21,475.40 and $22,622.50 respectively. The following reconciling items were identified: (1) Un-presented cheques amounted to $501.25. (2) Debits included in the bank statements were: (a) A $225.00 cheque received from a customer and deposited by Coconut Company was returned and marked Insufficient Funds. (b) Service fee for the month was $11.75. (c) Cheque book charge $12.00. (3) A credit in the bank statement indicated that a note receivable for the amount of $630 plus interest of $71 had been collected by the bank. The bank charged a collection fee of $20.00 and credited the remaining $681.00 to Coconut Companys account. (4) A deposit of $801.50 was in transit on 31 May. (5) The accountant discovered that cheque no. 103 for $225 in payment of insurance premium had been incorrectly recorded in the cash payments journal as $252. Required: Prepare a bank reconciliation for Coconut Company as of 31 May 2010.