PROBLEM #1 Greenview Food Store developed the following information in recording

Question

PROBLEM #1

Greenview Food Store developed the following information in recording its bank statement for the month of March 20XX.

                                    Balance per books on March 31 $     829

                                    Balance per bank on March 31     $ 7,030

Checks written in March but still outstanding, $5,200.

Checks written in February but still outstanding, $1,200.

Deposits of March 30 and 31 not yet recorded by bank, $3,100.

NSF check of customer returned by bank, $400.

Check #210 for $675 was correctly issued and paid by the bank but incorrectly entered in the cash payments journal as payment on account for $657, for payment to a creditor.

Bank service charge for March was $31.

A payment on account was incorrectly entered into the cash payments journal and posted to the accounts payable subsidiary ledger for $854 when check #318 was correctly prepared for $584. The check cleared the bank in March.

The bank collected a note receivable for the company for $3,000 plus $80 interest.

Instructions:

Prepare a bank reconciliation for the Greenview Food Store for the month of March 31, 20XX.

Journalize the adjusting entries for Greenview Food Store on March 31, 20XX.

Can someone help with this???!

Explanation / Answer

Greenview Food store

Bank reconciliation statement

For the month of March 31st,20XX

In the books of Greenview Food store

Journal

Particulars Amount(in $) Balance as per Bank, March 31 7030 Add: Deposit in transit 3100 10130 Less:Outstanding check of March 5200 Less: Outstanding check of February 1200 Adjusted Bank balance 3730 Balance as per Books, March31 829 Add:Check #318 overstated(854-584) 270 Add:Note receivable collected by bank 3000 Add:Interest Income from Note receivable 80 4179 Less:Bank service fee 31 Less:NSF check returned by bank 400 Less:Check #210 understated (675-657) 18 Adjusted Book balance 3730

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