Adria Lopez receives the March bank statement for Success Systems on April 11, 2

Question

Adria Lopez receives the March bank statement for Success Systems on April 11, 2014. The March 31 bank statement shows an ending cash balance of $66,666. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. a. A. Lopez notices that the bank erroneously cleared a $410 check against her account in March that she did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Sierra Systems. b. On March 25, the bank issued a $43 debit memorandum for the safety deposit box that Success Systems agreed to rent from the bank beginning March 25. c. On March 26, the bank issued a $107 debit memorandum for printed checks that Success Systems ordered from the bank. d. On March 31, the bank issued a credit memorandum for $36 interest earned on Success Systems' checking account for the month of March. e. A. Lopez notices that the check she issued for $126 on March 31, 2014, has not yet cleared the bank. f. A. Lopez verifies that all deposits made in March do appear on the March bank statement. g. The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,064 as of March 31 (prior to any reconciliation).

Explanation / Answer

Balance as per Cash Books    67,064.00 Add: Credit memorandum         36.00 check issued not yet cleared      126.00          162.00 Less: Bank erroneously cleared Check      410.00 Debit memorandum         43.00 Debit memorandum      107.00          560.00 Balance as per Bank Statement    66,666.00

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.