The following information is available for the Turner Company for the month of M
ID: 2510420 • Letter: T
Question
The following information is available for the Turner Company for the month of March:
a. On March 31, after all transactions have been recorded, the balance in the company's Cash account has a balance of $17,635.
b. The company's bank statement shows a balance on March 31 of $35,052.
c. Outstanding checks at March 31 include check #2748 in the amount of $3,975 and check #2753 in the amount of $5,667.
d. Examination of the checks on the bank statement with the entries in the accounting records reveals that check #2732 for the payment of an account payable was correctly written for $5,375, but was recorded in the accounting records as $5,735.
e. A debit memo included with the bank statement shows a $1,550 NSF check from a customer, C. Trainum.
f. A credit memo included with the bank statement indicates that the bank collected $15,000 on a noninterest-bearing note receivable for Martin. The bank deducted a $25 collection fee, and credited the remainder of $14,975 to Martin's account.
g. A deposit made late in the afternnoon of March 31 totaled $5,965, and did not appear on the bank statement.
h. Included with the bank statement was a debit memorandum in the amount of $45 for bank service charges. It has not been recorded on the company's books.
1. Prepare the March bank reconciliation for the Roberts Company.
2. Based on the bank reconciliation prepared for Requirement 1, prepare the general journal entries Roberts must make at March 31.
Use the templates below for your answers.
Bank Reconciliation March 31 Bank Statement Balance Book Balance Add: Add: Less: Less: Adjusted bank balance, October 31 Adjusted book balance, October 31 GENERAL JOURNAL Accounts Debits CreditsExplanation / Answer
Solution 1:
Solution 2:
Turner Company Bank Reconciliation - March 31 Bank's Cash balance Company's cash balance Particulars Amount Particulars Amount Ending balance as per Bank Statements $35,052.00 Ending Balance as per cash books $17,635.00 Additions: Additions: Outstanding cash receipt $5,965.00 Incorrect recording of check no 2732 ($5,735 -$5,375) $360.00 Collection of notes receivables $14,975.00 Deductions: Deductions: Outstanding Checks ($3,975 + $5,667) $9,642.00 NSF Cheque $1,550.00 Service Charge $45.00 Up to date cash balance as per bank $31,375.00 Up to date cash balance as per books $31,375.00Related Questions
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