Serial Problem Business Solutions LO P3 Santana Rey receives the March bank stat
ID: 2578555 • Letter: S
Question
Serial Problem Business Solutions LO P3
Santana Rey receives the March bank statement for Business Solutions on April 11, 2018. The March 31 bank statement shows an ending cash balance of $67,566. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.
S. Rey notices that the bank erroneously cleared a $440 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 Business Systems.
On March 25, the bank lists a $42 charge for the safety deposit box expense that Business Solutions agreed to rent from the bank beginning March 25.
On March 26, the bank lists a $105 charge for printed checks that Business Solutions ordered from the bank.
On March 31, the bank lists $40 interest earned on Business Solutions’s checking account for the month of March.
S. Rey notices that the check she issued for $127 on March 31, 2018, has not yet cleared the bank.
S. Rey verifies that all deposits made in March do appear on the March bank statement.
The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,986 as of March 31 (prior to any reconciliation).
2. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, for any bank charges. Use Interest Revenue, for any interest earned on the checking account for the month of March. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record journal entry related to the $440 check charged erroneously to Business Solutions' account, if any.
Record the journal entry related to the $42 debit memorandum, if any.
Record the journal entry related to the $105 debit memorandum for printed checks.
Record the journal entry for the $40 interest earned.
S. Rey verifies that all deposits made in March do appear on the March bank statement.
Date General Journal Debit Credit March 31 Required 1. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2018 BUSINESS SOLUTIONS Bank Reconciliation March 31, 2018 Bank statement balance 67,566 Book balance 67,986 Add Add Bank errOr 440 Bank interest 40 440 40 68,006 68,026 Deduct: Deduct: Outstanding check 127 Safety deposit rental Charge for checks 42 105 127 147 $ 67,879 Adjusted bank balance S 67,879 Adjusted book balanceExplanation / Answer
Bank reconciliation Bank balance 67566 Add Deposit in transit Error by bank 440 440 Less Outstanding checks 127 127 Adjusted bank balance 67879 Cash balance 67986 Add Directly deposited in bank Interest earned 40 40 Less Safety box rentals 42 Printed checks 105 147 Adjusted cash balance 67879 Journal entries 1 No entry 2 Misc expense 42 Cash 42 3 Misc expese 105 Cash 105 4 Cash 40 Interest income 40 5 No entry
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.