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
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The information needed to prepare a bank reconciliation and the related adjusting
entries for Wicked Pony at March 31 is listed below.
1 Cash balance per the accounting records of Wicked Pony, $18,106.69.
2 The bank statement showed a balance of $22,134.27 at March 31.
3 Accompanying the bank statement was a debit memorandum relating to a
check for $186 from a customer, D. Otay. The check was returned by the bank
and stamped “NSF."
Transcribed Image Text:The information needed to prepare a bank reconciliation and the related adjusting entries for Wicked Pony at March 31 is listed below. 1 Cash balance per the accounting records of Wicked Pony, $18,106.69. 2 The bank statement showed a balance of $22,134.27 at March 31. 3 Accompanying the bank statement was a debit memorandum relating to a check for $186 from a customer, D. Otay. The check was returned by the bank and stamped “NSF."
6 On March 29, the bank collected a non-interest-bearing note for Wicked Pony.
352
for safe deposit box rent; the bank had erroneously charged this item to the
4 Checks outstanding as of March 31 were as follows: no. 84 for $1,841.02.
for $1,323.00; no. 89 for $16.26.
account of Wicked Pony.
6 On March 29, the bank collected a non-interest-bearing note for Wicked Pony
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 bcen 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 correctly 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?
Transcribed Image Text:6 On March 29, the bank collected a non-interest-bearing note for Wicked Pony. 352 for safe deposit box rent; the bank had erroneously charged this item to the 4 Checks outstanding as of March 31 were as follows: no. 84 for $1,841.02. for $1,323.00; no. 89 for $16.26. account of Wicked Pony. 6 On March 29, the bank collected a non-interest-bearing note for Wicked Pony 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 bcen 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 correctly 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?
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