Dillman Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31$ 2.905 Balance per bank statement March 31 $10.900 (1) Checks written in March but still outstanding $7,000. (2) Checks written in February but still outstanding $2.800. (3) Deposits of March 30 and 31 not yet recorded by bank $5,200. (4) NSF check of customer returned by bank $1.200. (5) Check No, 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549. (6) Bank service charge for March was $50. (7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March (8) The bank collected a note receivable for the company for $4.000 plus $150 interest revenue. Instructions Prepare a bank reconciliation at March 31.

Dillman Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31$ 2.905 Balance per bank statement March 31 $10.900 (1) Checks written in March but still outstanding $7,000. (2) Checks written in February but still outstanding $2.800. (3) Deposits of March 30 and 31 not yet recorded by bank $5,200. (4) NSF check of customer returned by bank $1.200. (5) Check No, 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549. (6) Bank service charge for March was $50. (7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March (8) The bank collected a note receivable for the company for $4.000 plus $150 interest revenue. Instructions Prepare a bank reconciliation at March 31.

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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The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journals for October had been posted, the cash account had a balance of $8,998. a. Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495. b. Deposits in transit not recorded by bank, $778. c. Bank debit memo for service charges, $40. d. Bank credit memo for note collected by bank, $23,985 plus $885 interest. e. Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer. f. Checks outstanding, $1,860. Record the appropriate journal entries that would be necessary for Jeffrey Co. Record the entry that increases cash first. If an amount box does not require an entry, leave it blank.