Santana Rey receives the March bank statement for Business Solutions on April 11
ID: 2513700 • Letter: S
Question
Santana Rey receives the March bank statement for Business Solutions on April 11, 2017. The March 31 bank statement shows an ending cash balance of 567,366. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following a. S. Rey notices that the bank erroneously cleared a $450 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. b. On March 25, the bank issued a $56 debit memorandum for the safety deposit box that Business Solutions agreed to rent from the bank beginning March 25. c. On March 26, the bank issued a $108 debit memorandum for printed checks that Business Solutions ordered from the bank. d. On March 31, the bank issued a credit memorandum for $32 interest earned on Business Solutions's checking account for the month of March. e. S. Rey notices that the check she issued for $123 on March 31, 2017, has not yet cleared the bank. f. S. Rey 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 $67,825 as of March 31 (prior to any reconciliation) Required 1. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2017 BUSINESS SOLUTIONS Bank Reconciliation March 31, 2017 Bank statement balance Book balance Add Add: Deduct: Deduct Adjusted bank balance Adjusted book balanceExplanation / Answer
Answer:
1
Business Solution
Bank reconciliation
March 31,2016
Bank statement balance
67366
Book balance
67825
Add
Add
bank error
450
bank INTEREST
32
Deposit in transits
0
67816
67857
Deduct
Deduct
Outstanding cheque
-123
Safety deposit rental
-56
Charge for Cheque
-108
Adjusted banak balance
67693
Adjusted banak balance
67693
2
Description
debit $
Credit $
Cash
450
bank error
450
Miscellaneous expanses
56
Cash
56
(to record the safety deposit box
rental)
Outstanding check
108
Cash
108
(to record the printing check)
Cash
32
Interest revenue
32
Business Solution
Bank reconciliation
March 31,2016
Bank statement balance
67366
Book balance
67825
Add
Add
bank error
450
bank INTEREST
32
Deposit in transits
0
67816
67857
Deduct
Deduct
Outstanding cheque
-123
Safety deposit rental
-56
Charge for Cheque
-108
Adjusted banak balance
67693
Adjusted banak balance
67693
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