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  3. on 30 june 2019 parson limited had a cash balance...

Question: on 30 june 2019 parson limited had a cash balance...

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On 30 June 2019, Parson Limited had a cash balance in its general ledger of $13,034.30 debit. The bank statement from ASB on that date showed a credit balance of $19,495.00. A comparison of the statement with the cash ledger account and the bank reconciliation for May 2019 revealed the following facts: (i) Two cheques, totalling $1,770.10, from the May 2019 bank reconciliation had still not been presented to the bank. (ii) Cash sales of $2,945 on 20 June were deposited in the bank. The general jounal entry was incorrectly recorded as $2,954. The bank credited Parson Limited for the correct amount. (ii) From the review of the June cash journals, it was established that unpresented cheques totalled $3,567.10, and outstanding deposits were $1,190.40. (iv) On 24 June Parson Limited issued cheque no. 3485 for $540.80 to K. Smith on account. The cheque, which cleared the bank on 30 June, was incorrectly recorded in the cash ledger account as $450.80. (v) A $3,000 note receivable was collected by the bank for Parson Limited on 15 June, plus $80 interest. The bank charged a collection fee of $20. These items were not accounted for in the cash ledger account. (vi) The bank statement showed a debit entry for $647.10 for an NSF cheque written by T. Lawrence, a customer, to Parson Limited Required: (a) Prepare the necessary adjusting journal entries as at 30 June 2019 in general journal fomat. (b) Prepare the bank reconciliation for Parson Limited as at 30 June 2019.

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