Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,966. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,385 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. The bank erroneously cleared a $410 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems
Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,966. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,385 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. The bank erroneously cleared a $410 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,966. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,385 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.
- The bank erroneously cleared a $410 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems.
- On March 25, the bank statement lists a $59 charge for the safety deposit box. Santana has not yet recorded this expense.
- On March 26, the bank statement lists a $102 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense.
- On March 31, the bank statement lists $30 interest earned on Business Solutions’s checking account for the month of March. Santana has not yet recorded this revenue.
- S. Rey notices that the check she issued for $122 on March 31, 2020, has not yet cleared the bank.
- S. Rey verifies that all deposits made in March do appear on the March bank statement.
2. Prepare any necessary
Transcribed Image Text:2. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, for any bank charges. Use Interest Revenue, for any interest
earned on the checking account for March. (If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.)
View transaction list
Journal entry worksheet
1
2
4
>
Record the journal entry related to the $102 debit memorandum for printed
checks, if required.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Mar 31
Record entry
Clear entry
View general journal
Transcribed Image Text:2. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, for any bank charges. Use Interest Revenue, for any interest
earned on the checking account for March. (If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.)
View transaction list
Journal entry worksheet
1 2
>
Record the journal entry for the $30 interest earned, if required.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Mar 31
Record entry
Clear entry
View general journal
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