4 Checks outstanding as of March 31 were as follows: no. 84 for $1,841.02; no. 88 5 Also accompanying the bank statement was a debit memorandum for $44.80 for $1,323.00; no. 89 for $16.26. for safe deposit box rent; the bank had erroneously charged this item to account of Wicked Pony. 6 On March 29, the bank collected a non-interest-bearing note for Wicked Ponu The note was for $2,963; the bank charged a collection fee of $8.40. 7 A deposit of $2,008.50 was in transit; it had been mailed to the bank on March 31. 8 In recording a $160 check received on account from a customer, Ross Company, the accountant for Wicked Pony erroneously recorded the amount collected as $16. The check appeared correatly among the deposits on the March bank state- ment. 9 The bank service charge for March amounted to $20.40; a debit memo in this amount was returned with the bank statement. INSTRUCTIONS a Prepare a bank reconciliation at March 31. b Prepare the necessary journal entries. c What amount of cash should be included in the company's March 31 balance sheet?

4 Checks outstanding as of March 31 were as follows: no. 84 for $1,841.02; no. 88 5 Also accompanying the bank statement was a debit memorandum for $44.80 for $1,323.00; no. 89 for $16.26. for safe deposit box rent; the bank had erroneously charged this item to account of Wicked Pony. 6 On March 29, the bank collected a non-interest-bearing note for Wicked Ponu The note was for $2,963; the bank charged a collection fee of $8.40. 7 A deposit of $2,008.50 was in transit; it had been mailed to the bank on March 31. 8 In recording a $160 check received on account from a customer, Ross Company, the accountant for Wicked Pony erroneously recorded the amount collected as $16. The check appeared correatly among the deposits on the March bank state- ment. 9 The bank service charge for March amounted to $20.40; a debit memo in this amount was returned with the bank statement. INSTRUCTIONS a Prepare a bank reconciliation at March 31. b Prepare the necessary journal entries. c What amount of cash should be included in the company's March 31 balance sheet?

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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