QUESTION 1 (25 POINTS) The January 31 bank statement of Walter\'s Hospital has j

Question

QUESTION 1 (25 POINTS) The January 31 bank statement of Walter's Hospital has just arrived from Community Bank. To prepare the bank reconciliation, you gather the following data: Walter's Cash account shows a balance of $ 2,900 on January 31. The January 31 bank balance is $5,580. The bank statement includes a $500 deduction for a check drawn by Marks Department Stores. Walter's notified the bank of this bank error. The bank statement includes two charges for NSF checks from customers. One is for $370 (No. 5), and the other is for $110 (No. 7) The bank statement lists a $ 10 subtraction for the bank service charge. The following Walter's checks are outstanding at January 31: a. b. c. d. e. f. CHECK NO. AMOUNT $ 90 237 288 290 292 294 295 150 550 630 70 120 Walter's collects from a few customers by EFT. The January bank statement lists a $1,500 EFT deposit for a collection on account. The bank statement includes two special deposits that Walter's hasn't recorded yet: $850 for dividend revenue and $ 30 for the interest revenue Walter's earned on its bank balance during January. On January 31 Walter's treasurer deposited $ 320, but this deposit does not appear on the bank statement. g. h. i.

Explanation / Answer

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Walter's Hospital Bank Reconciliation Jan-31 Balance as per bank $ 5,580 Add: Deposit in transit $     320 Bank error $     500 $     820 Deduct: Outstanding checks $ 1,610 Adjusted bank balance $ 4,790 Balance as per books $ 2,900 Add: Electronic collection $ 1,500 Dividend income received by bank $     850 Interest income $        30 $ 2,380 Less: Bank service charges $        10 NSF Check $     480 $     490 Asjusted book balance $ 4,790

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