On March 31, 20X1, Home Decorating Pavilion received a bank statement showing a balance of $9,720. The balance in the firm's checkbook and Cash account on the same date was $9,962. The difference between the two balances is caused by the items listed below. a. A $2,845 deposit made on March 30 does not appear on the bank statement. b. Check 358 for $470 issued on March 29 and Check 359 for $1,620 issued on March 30O have not yet been paid by the bank. c. A credit memorandum shows that the bank has collected a $1,400 note receivable and interest of $140 for the firm. d. A service charge of $22 appears on the bank statement. e. A debit memorandum shows an NSF check for $510. (The check was issued by Dane Jaris, a credit customer.) f. The firm's records indicate that Check 341 of March 1 was issued for $800 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $750. g. The bank made an error by deducting a check for $545 issued by another business from the balance of Home Decorating Pavilion's account. Required: 1. Prepare a bank reconciliation statement for the firm as of March 31, 20X1. 2. Record entries for any items on the bank reconciliation statement that must be journalized.
On March 31, 20X1, Home Decorating Pavilion received a bank statement showing a balance of $9,720. The balance in the firm's checkbook and Cash account on the same date was $9,962. The difference between the two balances is caused by the items listed below. a. A $2,845 deposit made on March 30 does not appear on the bank statement. b. Check 358 for $470 issued on March 29 and Check 359 for $1,620 issued on March 30O have not yet been paid by the bank. c. A credit memorandum shows that the bank has collected a $1,400 note receivable and interest of $140 for the firm. d. A service charge of $22 appears on the bank statement. e. A debit memorandum shows an NSF check for $510. (The check was issued by Dane Jaris, a credit customer.) f. The firm's records indicate that Check 341 of March 1 was issued for $800 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $750. g. The bank made an error by deducting a check for $545 issued by another business from the balance of Home Decorating Pavilion's account. Required: 1. Prepare a bank reconciliation statement for the firm as of March 31, 20X1. 2. Record entries for any items on the bank reconciliation statement that must be journalized.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On March 31, 20X1, Home Decorating Pavilion received a bank statement showing a balance of $9,720. The balance in the firm's
checkbook and Cash account on the same date was $9,962. The difference between the two balances is caused by the items listed
below.
a. A $2,845 deposit made on March 30 does not appear on the bank statement.
b. Check 358 for $470 issued on March 29 and Check 359 for $1.620 issued on March 30 have not yet been paid by the bank.
C. A credit memorandum shows that the bank has collected a $1,400 note receivable and interest of $140 for the firm.
d. A service charge of $22 appears on the bank statement.
e. A debit memorandum shows an NSF check for $510. (The check was issued by Dane Jaris, a credit customer.)
f. The firm's records indicate that Check 341 of March 1 was issued for $800 to pay the month's rent. However, the canceled check
and the listing on the bank statement show that the actual amount of the check was $750.
g. The bank made an error by deducting a check for $545 issued by another business from the balance of Home Decorating Pavilion's
account.
Required:
1. Prepare a bank reconciliation statement for the firm as of March 31, 20X1.
2. Record entries for any items on the bank reconciliation statement that must be journalized.
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