Answer Happy

Problem 2 (25 points) The cash transactions and cash balances of Kitchen Delight, Inc., a manufacturer of kitchen cabinets, for the month of October were as follows: KITCHEN DELIGHT, INC. Bank Reconciliation October 31, 2021 $ 66.350 Balance per bank statement Add: Deduct: Adjusted cash balance Balance per depositor's records $77,073 Add: Deduct: Adjusted cash balance Additional information 1. The cash received on May 31 amounted to $15,000. It was left at the bank in the automatic teller machine after banking hours on October 31 and therefore was not recorded by the bank on the October statement. 2. A check paid by the bank for the purchase of office equipment was written for $579 but incorrectly recorded in the company's records as $479. 3. The bank collected a $7,000 Notes Receivable for Kitchen Delight and let them know in the October statement. 4. The bank statement also notified the company that the service charges for October amounted to $378. 5. One on Kitchen Delight's best customers, Mr. Vaugh, signed a $5,000 check which the company was not able to collect since there were insufficient funds in the client's bank account. 6. Two checks signed by Kitchen Delight in payment to suppliers have not yet been collected: Nº 76 for $2,200 and Nº 52 for $555. Instructions 1.Prepare a bank reconciliation using the information provided above. (12 points) 2. Prepare the necessary journal entries (in general journal form) to adjust the accounting records of Kitchen Delight, Inc., as of October 31. (8 points) 3. Determine the amount of cash and cash equivalents that should be reported in the company's balance sheet dated October 31. (5 points)