1. Based on the above information, prepare a bank reconciliation for the Wisconsin Company.2. Prepare the necessary general journal entries to bring Cash to the reconciled balance.3. Post to the Cash t-account Cash Acct. No. 101Explanation28 Balance31 Total receipts31 Total paymentsDatePRDebitCreditBalanceFebruaryMarch8,408R423,69815,80315,290D57,8951. Based on the above information, prepare a bank reconciliation for the Wisconsin Company.2. Prepare the necessary general journal entries to bring Cash to the reconciled balance.3. Post to the Cash t-account.NOTEExcept for the bank teller error on 3/30, the bank made no mistakes.Use Accounts Payable to correct errors pertaining to recording checks.Use Service Revenue to correct errors pertaining to recording cash receipts. The following information is available for the Wisconsin Company for its March 31, 2022 bankreconciliation:From the March 31 bank statement:PreviousBalanceTotal Checks and Total Deposits andDebitsCurrentCreditsBalance$5,908$10,385$15,910$11,433Deposits and CreditsAmountDaily BalanceAmount5,90813,178Checks and DebitsDateNo.AmountDateDate1707,2702,5004,3403-Mar29052-Mar1-Mar11-Mar29074603-Mar2-Mar15-Mar290972527-Mar3-Mar15,50815,04814,32325-Mar29081,53031-Mar1,800 Wire In11-Mar29-Mar29063,85015-Mar30-Mar650 NSF25-Mar12,79330-Mar3,000 Wire out27-Mar17,13329-Mar13,28330-Mar31-Mar9,63311,433The $2,500 deposit was in transit as of February 28.NSF: Non-sufficient funds check from Wisconsin's customer Vaughan Inc.Wire Out: Bank teller error. The wire was supposed to come out of ABC Company's account.Wire In: Wisconsin's customer Sill Inc. made a payment on account.From the Wisconsin Company's accounting records:Cash Receipts DepositedCash PaymentsDateAmountCheck No.AmountMarch7$7,2702905$170274,43029063,850291,5002907460312,09029081,3502909725$15,290291034029111,000$7,895

A bank reconciliation statement is prepared to identify the reason for differences between the…

1. Based on the above information, prepare a bank reconciliation for the Wisconsin Company. 2. Prepare the necessary general journal entries to bring Cash to the reconciled balance. 3. Post to the Cash t-account

1. Based on the above information, prepare a bank reconciliation for the Wisconsin Company. 2. Prepare the necessary general journal entries to bring Cash to the reconciled balance. 3. Post to the Cash t-account

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

1. Based on the above information, prepare a bank reconciliation for the Wisconsin Company.
2. Prepare the necessary general journal entries to bring Cash to the reconciled balance.
3. Post to the Cash t-account

Cash Acct. No. 101
Explanation
28 Balance
31 Total receipts
31 Total payments
Date
PR
Debit
Credit
Balance
February
March
8,408
R4
23,698
15,803
15,290
D5
7,895
1. Based on the above information, prepare a bank reconciliation for the Wisconsin Company.
2. Prepare the necessary general journal entries to bring Cash to the reconciled balance.
3. Post to the Cash t-account.
NOTE
Except for the bank teller error on 3/30, the bank made no mistakes.
Use Accounts Payable to correct errors pertaining to recording checks.
Use Service Revenue to correct errors pertaining to recording cash receipts.

The following information is available for the Wisconsin Company for its March 31, 2022 bank
reconciliation:
From the March 31 bank statement:
Previous
Balance
Total Checks and Total Deposits and
Debits
Current
Credits
Balance
$5,908
$10,385
$15,910
$11,433
Deposits and Credits
Amount
Daily Balance
Amount
5,908
13,178
Checks and Debits
Date
No.
Amount
Date
Date
170
7,270
2,500
4,340
3-Mar
2905
2-Mar
1-Mar
11-Mar
2907
460
3-Mar
2-Mar
15-Mar
2909
725
27-Mar
3-Mar
15,508
15,048
14,323
25-Mar
2908
1,530
31-Mar
1,800 Wire In
11-Mar
29-Mar
2906
3,850
15-Mar
30-Mar
650 NSF
25-Mar
12,793
30-Mar
3,000 Wire out
27-Mar
17,133
29-Mar
13,283
30-Mar
31-Mar
9,633
11,433
The $2,500 deposit was in transit as of February 28.
NSF: Non-sufficient funds check from Wisconsin's customer Vaughan Inc.
Wire Out: Bank teller error. The wire was supposed to come out of ABC Company's account.
Wire In: Wisconsin's customer Sill Inc. made a payment on account.
From the Wisconsin Company's accounting records:
Cash Receipts Deposited
Cash Payments
Date
Amount
Check No.
Amount
March
7
$7,270
2905
$170
27
4,430
2906
3,850
29
1,500
2907
460
31
2,090
2908
1,350
2909
725
$15,290
2910
340
2911
1,000
$7,895

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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