Prepare a bank reconciliation for Jam Enterprises for the month ended March 31, 2018 and prepare the necessary journal entries.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. Oscar Myer receives the March bank statement for Jam Enterprises on April 11, 2018. The March 31 bank statement shows an ending cash balance of $67,566. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.

    1. O. Myer notices that the bank erroneously cleared a $500 check against his account in March that he did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Jam Systems.
    2. On March 25, the bank lists a $50 charge for the safety deposit box expense that Jam Enterprises agreed to rent from the bank beginning March 25.
    3. On March 26, the bank lists a $102 charge for printed checks that Jam Enterprises ordered from the bank.
    4. On March 31, the bank lists $33 interest earned on Jam Enterprises' checking account for the month of March.
    5. O. Myer notices that the check he issued for $128 on March 31, 2018, has not yet cleared the bank.
    6. O. Myer verifies that all deposits made in March do appear on the March bank statement.
    7. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,057 as of March 31 (prior to any reconciliation).

     

    Prepare a bank reconciliation for Jam Enterprises for the month ended March 31, 2018 and prepare the necessary journal entries.

    Hint: You may not need to fill in every box

     

      Bank Reconciliation
         
    Balance per Bank Statement    
    Addition:    
         
    Subtotal    
    Deduction:     
         
    Adjusted Cash Balance    
         
    Balance per Depositor's Records (Books)    
    Addition:     
         
    Subtotal    
    Deduction:     
         
         
    Adjusted Cash Balance    

     

                                                   GENERAL JOURNAL                              Page 1

    Date

    Description

    Post

    Debit

    Credit

     3/31/18

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

 

 
 
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