I need help to finish the Bank reconciliation….
I need help to finish the Bank reconciliation. please finish in the format attachment with different color. The background of the company and some necessary previous information are in the attachment. Background AssumeitiscurrentlyJune1,2013. YouareworkingforthetemporaryaccountingemploymentagencyknownasUptempo.Todayyouhavebeenasked toworkatRiggler's,asmallcandystorethatoperatesininnercityMiamiandisownedbyAdrianoDavisson.Your taskhereistocompletetheaccountingcycleforRiggler'sforthemonthofJune2013.Toassistyouinthistask, Adrianotellsyoutoreadthecompany'saccountingpoliciesandprocedures.Notethatyouwillberequiredtofollow thesepoliciesandprocedureswhencompletingtheaccountsforRiggler's. Accountingpolicies a.Businessoperations:Riggler'sissetupasaprivatenonlistedcorporationbasedinMiamiwithAdrianoDavisson asthesolestockholder.Thebusinessderivesitsmainsourceofrevenuefromretailsalesofcandies. Toassistinmanagingthebusiness,Riggler'srentsasmallofficespace.Notethatthebusinessisrequiredtopayfor therentforthispremisesinadvance. Theelectricityandwaterexpensesincurredduringthemonthrelatetotherunningoftheoffice.Additionalexpenses includeaninsurancepolicytoprotecttheequipmentintheofficeintheeventoftheftorfire. Allcostsassociatedwiththeofficeareclassifiedasgeneralandadministrativeexpenses. Adrianoistheonlyfulltimeemployeeandhisroleistohandlealladministrativetasks.Adriano'ssalaryispaidonce attheendofeachmonth.Allotheremployeesaresalesstaffwhoareemployedonaparttimebasis.Thesalesstaff receivetheirwagesonaweeklybasis. b.Accountingcycle:Thebusinessadoptsamonthlyaccountingcycle. c.Purchases:Purchasesarerecordedwhenthebusinessreceivesthegoods.Allitemspurchasedarereceivedon thesamedayasrecordedinthetransactionlist,exceptforpurchaseorderswhicharereceivedatalaterdate.Note thatthebusinessusesthegrossmethodofrecordingpurchasesandreceivestradediscountsfromsomesuppliers. d.Revenuerecognition:Thebusinessrecognizesrevenuewhengoodssoldaredeliveredtocustomers.Allitems soldaredeliveredonthesamedayasrecordedinthetransactionlistexceptforsalesorders,whicharedeliveredata laterdateasagreedwiththecustomer.Notethatthebusinessusesthegrossmethodofrecordingsalesand sometimesgrantstradediscountstocustomers.Pastexperiencehasshownthatofferingearlypaymentdiscountsdid notincreasethelikelihoodofaccountsreceivablebeingpaidpromptly.Therefore,discountsforearlypaymentof accountsarenotnormallyofferedtocreditcustomersexceptinexceptionalcircumstances. e.Salesreturns:Sothatthebusinesscaneasilytrackthelevelofsalesreturnsinrelationtooverallsales,allsales returnsarerecordedusingacontrarevenueaccount(SalesReturnsandAllowances)ratherthanbeingrecorded directlyintheSalesRevenueaccount. f.Salestax:Adrianohasadvisedyoutoignoretheeffectofthesalestax.[ASIDE:Thisisanassumptiontomakethe practiceseteasierforyoutocomplete.Intherealworld,salestaxcannotbeignored.] g.Cash:Thebusinessacceptscashandchecksandusescheckstopayforthemajorityofitsexpenses.Ontheday checksarereceived,Adrianodepositsthematthebank.Itmaytakeanumberofdaysforthecheckstobeclearedby thebank.ThebusinessholdsitscheckingaccountwithBitiBank. h.Inventories:ThebusinessusestheperpetualinventorysystemandappliestheFIFOmethodtoallocatecoststo inventoryandcostofgoodssold.Notethatthebusinessmaintainsasetofinventorycardswithmultiplepairsoflines tokeeptrackofchangesininventory.IneachinventorycardundertheBalancecolumn,itemswithdifferentunitcosts arelistedinseparatelineswiththeitemspurchasedearlierlistedfirstinthepairoflinesprovided. i.Prepayments:Thebusinesshasapolicyofrecordingprepayments,includingofficesupplies,asassets.Attheend ofthemonth,adjustmentsaremadetotherelevantaccountstorecognizetheexpenseduringtheaccountingperiod. j.Property,plantandequipment:Property,plantandequipmentitemsaredepreciatedovertheirestimateduseful lifeusingthestraightlinemethodtocalculatethedepreciationcharge.Depreciationisallocatedonamonthlybasis andthemonthlydepreciationchargeiscalculatedastheyearlydepreciationexpensedividedbythenumberof monthsinayear. k.Longtermliabilities:ThebusinessobtainedaninterestonlyloanfromMRMCBankonJune1,2013atasimple interestrateof6%peryear.ThefirstinterestpaymentisdueattheendofAugust2013andtheprincipalontheloan isdueonJune1,2016. Accountingprocedures Riggler'sadoptsamanualaccountingsystemandusesthegeneraljournalandspecial journalsfortherecordingofindividualtransactions.Adriano Davissonhastailoredthe designofthosejournalstomeetthespecificneedsofthebusinesssotheformatof thosejournalsmaybeslightlydifferenttothoseyouhaveseenbefore.However,he advisesyouthatthegeneralprinciplesofhowtousespecialjournalsarefollowedinhis business. Thetablebelowshowsthejournalsusedbythebusinessandthetypesoftransactions thatcanberecordedineachofthesejournals: Journal General journal Code Transaction type GJ All transactions that are not able to be recorded in the special journals below. Sales journal SJ Credit sales of inventory Purchases journal PJ Credit purchases of inventory Cash receipts journal CRJ Cash inflows to the business Cash payments CPJ Cash outflows from the business journal Tosummarizetheeffectsoftransactionsrecordedinthosejournals,Adrianomaintains thegeneralledgerandthefollowingledgers: accountsreceivablesubsidiaryledger, accountspayablesubsidiaryledger,and inventorycards. Adrianothenindicatesthatheisawareotherbusinessesusingamanualaccounting systemmayposttransactionsfromjournalstoledgersatdifferenttimes(i.e.dailyor monthly).Althoughthepostingproceduresusedinhisbusinessmaybedifferenttowhat youhaveseenbefore,heasksthatyouspecificallyfollowhiscompany'saccounting procedures. Theinformationbelowexplainswhentransactionsarerequiredtobepostedfromthe journalstotheappropriateledgeraccountsandinventorycards: Postingofentriesrecordedinthegeneraljournal Alltransactionsthatareenteredinthegeneraljournalarepostedonadailybasis.Note thatifatransactionrecordedinthegeneraljournalinvolvesbothacontrolaccountanda subsidiaryledgeraccount,thatjournalentrywillneedtobepostedtobothledgers. Postingofentriesrecordedinthespecialjournals Whenatransactionisrecordedinaspecialjournal,partofthejournalentrymayneed tobeposteddailyandpartofthatentryistobepostedmonthly. a.Daily: Ifatransactionaffectsasubsidiaryledgeraccount,thentheentrythatinvolvesasubsidiaryledgeraccount istobepostedtothatsubsidiaryledgeronadailybasis.However,thesameamountpostedtothesubsidiary ledgeraccountisnotpostedtotherelatedcontrolledgeraccountimmediately.Thisprocedureallowsthe businesstokeeptrackofsupplierandcustomerbalancesonadailybasis. Inthecashreceiptsjournalorthecashpaymentsjournal,ifatransactionisrecordedintheOtherAccounts column,thentheamountrecordedintheOtherAccountscolumnistobepostedtotheappropriategeneralledger accountdaily. Ifatransactionresultsinachangeinthenumberofinventoryitemsonhand,thentheentrythataffects inventoryistobepostedtotheappropriateinventorycardonadailybasis.Inthisway,thebusinessisableto trackthebalanceofinventoryonhand. b.Monthly: Attheendofthemonth,thetotalsofeachcolumninthespecialjournalsaremanuallycalculated.Those totals,withtheexceptionofthetotalsoftheOtherAccountscolumnsinthecashjournals,arepostedtothe appropriategeneralledgeraccountsattheendofthemonth. Instructionsforbankreconciliation 1)PreparethebankreconciliationstatementasatJune30,2013.Todothis,youwillneedtouse: thepreviousmonth'sbankreconciliationstatement,and thecurrentmonth'sbankstatementandcashjournals Notethatthebankreconciliationstatementprovidedbelowmaycontainmorerowsthanrequired. 2)Usethebankreconciliationstatementtorecordtherelevantreconcilingitemsinthegeneraljournal. 3)Postentriesrecordedinthegeneraljournaltotheappropriateledgeraccountsaccordingtothecompany's accountingpoliciesandprocedures. 4)RecordtheupdatedbalanceofeachledgeraccountintheBalancerowofeachledger,evenforledgerswitha balanceofzero.Althougheachledgeralreadyhasarunningbalance,theBalancerowmuststillbefilledoutinorder toreceivefullpoints. Remember: Enterallanswerstothenearestwholedollar. Theremaybeentriesinthegeneraljournalthatrequirepostingtobothacontrolaccount andasubsidiaryledger.Inthesecases,afteryouhavepostedtobothledgers,youshouldenter thereferenceforboththegeneralledgeraccountandthesubsidiaryledgeraccountinthePost Ref.columntoindicatethatyouhavepostedtobothaccounts.Forexample,ifthereference numberforthecontrolaccountis110andthereferencenumberforthesubsidiaryledger accountis1101,youshouldtype'110/1101'intothePostRef.column. Youarealsorequiredtoapplythejournalsandledgersinstructionsprovidedinprevious weeks. (Q=822.bankRecQuestion) Riggler's Bank Reconciliation Statement June 30, 2013 $ $ Balance per bank: Add: Deduct: No. No. No. Adjusted balance per bank Balance per book Add: Deduct: Adjusted balance per book (Q=823.generalJournalBankRec) GENERALJOURNAL Date Account and Explanation Jun 20Sales Returns and Allowances Jun 20 ARC - Sweet Tooth (sales return) Jun 20Merchandise Inventory Post Ref. Debit 401 110/110-3 3,456 120 2,112 Credit 3,456 Jun 20 Cost of Goods Sold (sales return) 500 Jun 28APC - Brennan Imports Group Jun 28 Merchandise Inventory (purchase return) Jun 30 944 (select) (select) Jun 30 944 (select) (select) Jun 30 210/210-5 120 (select) (select) Jun 30 2,112 (select) (select) (Q=8241105.AcctsRec5_bankRec) SUBSIDIARYLEDGERS Account:ARCMercurySquare AccountNo.1105 Date Description Ref. May 31Balance Jun 2Repayment Jun 18Credit sale Jun 23Credit sale Jun 30 Jun 30 Jun 30 Jun 30Balance Debit CRJ SJ SJ Credit Balance 2,753 DR 0 2,240 DR 51,392 DR 2,753 2,240 49,152 (Q=8241106.AcctsRec6_bankRec) Account:ARCCentralCandy AccountNo.1106 Date Description Ref. May 31Balance Jun 15Repayment Jun 27Credit sale Jun 30 Jun 30 Jun 30 Jun 30Balance Debit CRJ SJ Credit 1,100 4,928 Balance 4,222 DR 3,122 DR 8,050 DR (Q=825100.Cash_bankRec) GENERALLEDGER Account:Cash AccountNo.100 Date Description May 31Balance Total from cash receipts Jun 30 journal Total from cash payments Jun 30 journal Jun 30 Jun 30 Jun 30 Jun 30 Jun 30Balance Ref. Debit CRJ Credit Balance 63,034 DR 186,349 249,383 DR CPJ 44,619 204,764 DR (Q=8251100.ARControl_bankRec) Account:ARCAccountsReceivableControl AccountNo.110 Date Description Ref. May 31Balance Sales return from Sweet Jun 20 GJ Tooth Jun 30Total from sales journal SJ Total from cash receipts Jun 30 CRJ journal Jun 30 Jun 30 Jun 30 Jun 30 Jun 30Balance Debit Credit Balance 33,870 DR 3,456 30,414 DR 61,072 91,486 DR 27,798 63,688 DR (Q=8252100.APControl_bankRec) Account:APCAccountsPayableControl AccountNo.210 Date Description May 31Balance Purchase return to Brennan Jun 28 Imports Group Jun 30Total from purchases journal Total from cash payments Jun 30 journal Jun 30 Jun 30 Jun 30 Jun 30Balance Ref. Debit GJ Balance 44,260 CR 944 PJ CPJ Credit 43,316 CR 22,112 65,428 CR 18,691 46,737 CR (Q=825403.InterestRevenue_bankRec) Account:InterestRevenue AccountNo.403 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Jun 30Balance (Q=825571.InterestExpense_bankRec) Account:InterestExpense AccountNo.571 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30Balance Ref. Debit Credit Balance 0 (Q=825572.BankCharges_bankRec) Account:Admin.ExpenseBankCharges AccountNo.572 Date Description Ref. May 31Balance Jun 30 Jun 30 Jun 30 Jun 30Balance Debit Credit Balance 0