Part ii. Prepare the journal entries resulting from the bank reconciliation Required informationThe following information is available to Swingset Company to prepare its bankreconciliation at the end of March 2022: The company recorded a $1,764 cheque inpayment of an account payable incorrectly as $1,674. The bank charged the company$45 for monthly standard service charges. A review of cashed cheques returned withthe bank statement indicated that cheques amounting to$3,431 had not been cashedby March 31. March 31 general ledger Cash account balance is $12,010. The creditmemo enclosed with the bank statement showed that the bank collected a $3,458note plus interest of $125 on behalf of the company. The debit memo included withthe bank statement listed a non-sufficient funds (NSF) cheque for $1,758 plus a $25NSF bank charge as a result of a nonpayment from its customer, Ferrow and Bell. Thebank charged the company $37 for printing new cheques during the month. March 31cash balance on the bank statement is $16,169. The bank recorded a deposit of$7,600 incorrectly as a deposit of $6,700.Prepare the journal entries resulting from the bank reconciliation.

Solution:- Preparation of Journal entries as follows under:- Note:- If any expenses charged, journal…

Answered: Part ii. Prepare the journal entries…

Business

Accounting

Part ii. Prepare the journal entries resulting from the bank reconciliation

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

Part ii. Prepare the journal entries resulting from the bank reconciliation

Required information
The following information is available to Swingset Company to prepare its bank
reconciliation at the end of March 2022: The company recorded a $1,764 cheque in
payment of an account payable incorrectly as $1,674. The bank charged the company
$45 for monthly standard service charges. A review of cashed cheques returned with
the bank statement indicated that cheques amounting to$3,431 had not been cashed
by March 31. March 31 general ledger Cash account balance is $12,010. The credit
memo enclosed with the bank statement showed that the bank collected a $3,458
note plus interest of $125 on behalf of the company. The debit memo included with
the bank statement listed a non-sufficient funds (NSF) cheque for $1,758 plus a $25
NSF bank charge as a result of a nonpayment from its customer, Ferrow and Bell. The
bank charged the company $37 for printing new cheques during the month. March 31
cash balance on the bank statement is $16,169. The bank recorded a deposit of
$7,600 incorrectly as a deposit of $6,700.
Prepare the journal entries resulting from the bank reconciliation.

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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