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 $67,966. 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 $52 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 $101 debit memorandum for printed checks that Success Systems ordered from the bank. d. On March 31, the bank issued a credit memorandum for $28 interest earned on Success Systems' checking account for the month of March. e. A. Lopez notices that the check she issued for $135 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 $68,366 as of March 31 (prior to any reconciliation). Required: 1. Prepare a bank reconciliation for Success Systems for the month ended March 31, 2014.

Bank statement balance$67,966 Book balanceAdd:

Add: $68,376$0 Add:

Deduct:Deduct:Outstanding Check135 Deduct:

Adjusted bank balance$68,213 Adjusted book balance$0

Explanation / Answer

Bank Reconciliation Statement for the month ended March 31,2014 Balance as per Bank Statement 67966 Add: Erroneous clearing by Bank 410 Less: Outstanding check 135 Adjusted/Corrected Bank Balance 68241 Balance as per Books 68366 Less: Debit memo for safety deposit box 52 Debit memo for printed checks 101 Add: Credit memo for int. on checking a/c 28 Adjusted/Corrected Balance as per Books 68241

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