Grier Food Store used the following information in recording its bank reconcilia

Question

Grier Food Store used the following information in recording its bank reconciliation for the month of April. Balance per books April 30 $905 Balance per bank statement April 30 $11,300 (1) Checks written in April but still outstanding $6,300. (2) Checks written in March but still outstanding $2,800. (3) Deposits of April 30 not yet recorded by bank $4,900. (4) NSF check of customer returned by bank $500. (5) Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549. (6) Bank service charge for April was $40. (7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in April. (8) The bank collected a note receivable for the company of $6,000 plus $240 interest revenue. Prepare a bank reconciliation at April 30.

Explanation / Answer

Bank reconciliation Ending balance as per bank statement 11300 Add Deposit in transit 4900 16200 Less Outstanding checks 9100 Adjusted bank balance 7100 Ending balance as per cash account 905 Add Notes receivable 6000 Interest revenue 240 Error in recording (824-284) 540 6780 Less Service charges 40 Error in bank (594-549) 45 NSF check 500 585 Adjusted cash balance 7100

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