Question 1 SHOW LIST OF ACCOUNTS LINK TO TEXT SHOW LIST OF ACCOUNTS LINK TO TEXT

Question

Question 1

SHOW LIST OF ACCOUNTS

LINK TO TEXT

SHOW LIST OF ACCOUNTS

LINK TO TEXT

SHOW LIST OF ACCOUNTS

LINK TO TEXT

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Date

Account Titles and Explanation

Debit

Credit

Mar. 31

31

31

31

Question 1

The bank portion of last month’s bank reconciliation for Crane Ltd. at February 28 was as follows:
CRANE LTD.
Bank Reconciliation
February 28 Cash balance per bank $18,096 Add: Deposits in transit 3,110 21,206 Less: Outstanding cheques           #3451 $1,957           #3470 2,144 4,101 Reconciled cash balance $17,105
The reconciled cash balance per bank agreed with the reconciled cash balance per books after the bank reconciliation at February 28. The March bank statement showed the following:
CRANE LTD.
Bank Statement
March 31 Date Description Amounts
Deducted from
Account (Debits) Amounts Added
to Account
(Credits) Balance Feb. 28 Opening balance 18,096 Mar. 1 Cheque, No. 3451 1,957 16,139 1 Deposit 3,110 19,249 2 Cheque, No. 3470 2,144 17,105 4 Deposit 1,974 19,079 9 Cheque, No. 3471 1,679 17,400 10 Returned cheque—NSF, J. Mustafa 878 16,522 10 NSF fee 35 16,487 15 EFT, loan payment 1,203 15,284 19 Cheque, No. 3472 1,843 13,441 26 Deposit 3,239 16,680 31 EFT, collection on account from M. Boudreault 606 17,286 31 Bank service charges and credit card fees 89 17,197
Crane’s cash receipts and payments for the month of March showed the following:
Cash Receipts Cash Payments Date Amount Date Number Amount Mar. 4 $1,974 Mar. 7 3471 $1,679 26 3,239 15 3472 1,483 31 4,045 29 3473 4,915 $9,258 $8,077 Additional information: 1. The EFT loan payment should have been recorded by the company on March 15, but this entry was missed. The payment included $83 of interest and a $1,120 payment on the loan principal. 2. The bank made an error processing cheque #3472. 3. The EFT collection was not previously recorded. 4. Bank service charges and credit card fees totalling $89 were not previously recorded.

Explanation / Answer

1)Caash balance per books at March 31= Beginnin cash balance per books +cash deposits -cash payments

       = 17105+9258-8077

     = $ 18286

2)amount of the deposits in transit at March 31 = March 31 deposit 4045

3)amount of the outstanding cheques at March 3: march 29 chq no.3473 - 4915

4)

5)

Bank reconcilation Balance as per Bank 17197 Balance as per book 18286 Add:Deposit In transit 4045 Add:Collection on account 606 Error made in recording check 3472 [1843-1483] 360 lesS: Less:outstanding checks (4915) NSF returned (878) NSF fee (35) Bank service charge (89) Loan payment (1203) Adjusted balance 16687 Adjusted balance 16687

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