Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: (In attachment named as bank reconciliation) A list of deposits made and cheques written during April, taken from the cash receipts journal and cash disbursements journal, is shown below: Deposits made April 7 ........................................ $690 13 .............................................. 4.600 18 .............................................. 5,900 23 ............................................... 13,900 27 ............................................... 1.750 30 .............................................. 44.600 Total April Cash Receipts ..... $71.440 Cheques Written No. 23 ............................................. $5.200 24 ............................................. 3.150 25 ............................................. 940 26 ............................................. 310 27 ............................................. 4.230 28 ............................................. 4.900 29 ............................................. 19.630 30 ............................................. 41.000 31 ............................................. 412 32 ............................................. 11.400 Total April Cash Disbursements .. $91.172 The following bank statement is available for April: (In attachment name as bank statement) In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the cash disbursements journal correctly as $4,900. The NSF cheque for $14,200 was that of customer Oprah Winney, deposited in March. On the bank statement, the payment for $15,900 is regarding a note payable.

Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: (In attachment named as bank reconciliation) A list of deposits made and cheques written during April, taken from the cash receipts journal and cash disbursements journal, is shown below: Deposits made April 7 ........................................ $690 13 .............................................. 4.600 18 .............................................. 5,900 23 ............................................... 13,900 27 ............................................... 1.750 30 .............................................. 44.600 Total April Cash Receipts ..... $71.440 Cheques Written No. 23 ............................................. $5.200 24 ............................................. 3.150 25 ............................................. 940 26 ............................................. 310 27 ............................................. 4.230 28 ............................................. 4.900 29 ............................................. 19.630 30 ............................................. 41.000 31 ............................................. 412 32 ............................................. 11.400 Total April Cash Disbursements .. $91.172 The following bank statement is available for April: (In attachment name as bank statement) In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the cash disbursements journal correctly as $4,900. The NSF cheque for $14,200 was that of customer Oprah Winney, deposited in March. On the bank statement, the payment for $15,900 is regarding a note payable.

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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Question

Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31:

(In attachment named as bank reconciliation)

A list of deposits made and cheques written during April, taken from the cash receipts journal and cash disbursements journal, is shown below:

Deposits made

April 7 ........................................ $690

13 .............................................. 4.600

18 .............................................. 5,900

23 ............................................... 13,900

27 ............................................... 1.750

30 .............................................. 44.600

Total April Cash Receipts ..... $71.440

Cheques Written

No. 23 ............................................. $5.200

24 ............................................. 3.150

25 ............................................. 940

26 ............................................. 310

27 ............................................. 4.230

28 ............................................. 4.900

29 ............................................. 19.630

30 ............................................. 41.000

31 ............................................. 412

32 ............................................. 11.400

Total April Cash Disbursements .. $91.172

The following bank statement is available for April:

(In attachment name as bank statement)

In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the cash disbursements journal correctly as $4,900.
The NSF cheque for $14,200 was that of customer Oprah Winney, deposited in March.
On the bank statement, the payment for $15,900 is regarding a note payable.

Bank Statement
To: Stewart Recording Studio
April 30, 2017
Bank of Canada
Cheques/Charges
Deposits/Credits
Balance
22,100
#31
04/03
412
04/03
10,000
31,688
04/07
04/13
#28
9,400
04/07
690
22,978
#26
310
04/13
4,600
27,268
NSF
04/18
14,200
04/18
5,400
18,968
#24
04/23
3,150
04/23
13,900
29,718
1,750
120,000
04/27
5,200
19,630
#23
04/27
26,268
#29
04/30
04/30
126,638
PMT
04/30
15,900
110,738
110,288
110,113
INT
04/30
450
sc
04/30
175
NSF = Not Sufficient
sc = Service
Charge
PMT = Payment of
Principal on
the Loan
INT = Interest
on Bank
Loan
Funds

Stowart Recording Studio
Bank Reconciliation
March 31, 2017
Bank statement balance
$22.100
Book balance..
$30,945
Add:
Deposit of March 31 in transit.
10,000
$32,100
Deduct:
Outstanding cheques:
#14
$840
# 22
315
1,155
Adjusted bank balance
$30,945
Adjusted book balance
$30,945
Cash
Acct. No. 101
Dato
Explanation
PR
Dobit
Сredit
Balance
2017
Mar.
31
Balance
30,945
Apг.
30
CR17
71.440
102,385
30
CD13
91.172
11,213

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