The following information regarding cash for Alpha Company is provided for the m
ID: 2538310 • Letter: T
Question
The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016: Item Amount Ending Cash per Bank Statement $25,000 Note collected by bank included interest of $115 $5,615 Bank Service Charges $55 Deposits in Transit $2,775 Outstanding Cheques $4,500 Customer Cheque returned NSF $350 A review of the bank statement reflected that cheque #224 recorded in the company cheque register as $1,735 to settle an accounts payable, was paid by the bank for the amount of $1,375. Use this information to prepare the compound General Journal entry (without explanation) for March 31, 2016, to cause the company books to match the adjusted cash balance based on the completed bank reconciliation. If no entry is required then write "No Entry Required."
Explanation / Answer
Date Account Debit Credit 3/31/16 Cash $5,570 Accounts Receivable $350 Misc. Expense $55 Notes Receivable $5,500 Interest Income $115 Accounts Payable $360 Balance per Bank $25,000 Add: Deposits in Transit $2,775 Subtotal $27,775 Deduct: Outstanding Cheques $4,500 Adjusted Bank Balance $23,275 Balance per Books $17,705 Add: Note Collected plus Interest $5,615 In Chk#224 error add back $360 Subtotal $23,680 Deduct: NSF Cheque $350 Bank Service Charge $55 Adjusted Book Balance $23,275
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