The Cash general ledger account balance of Gladstone Ltd. was $2,531 at March 31, 2019. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted: a. A deposit of $1,000 made on March 30, 2019 was not yet recorded by the bank on the March statement. b. A customer's check amounting to $700 and deposited on March 15 was returned NSF with the bank statement. c. Check #4302 for office supplies expense, correctly made out for $125 and clearing the bank for this amount, was recorded in the company records as $152. Check deduction error of $27 d. $20 for March service charges were recorded on the bank statement but not in the company records. e. A cancelled check for $250 belonging to Global Corp. but charged by the bank to Gladstone Ltd. was included with the cancelled checks returned by the bank. f. There were $622 of outstanding checks at March 31. g. The bank collected a note receivable for $300 on March 31 including interest of $50. The bank charged Gladstone Ltd. a $10 service charge that also is not included in the company records. Required: Prepare a bank reconciliation and record all necessary adjusting entries at March 31, 2019.
The Cash general ledger account balance of Gladstone Ltd. was $2,531 at March 31, 2019. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted: a. A deposit of $1,000 made on March 30, 2019 was not yet recorded by the bank on the March statement. b. A customer's check amounting to $700 and deposited on March 15 was returned NSF with the bank statement. c. Check #4302 for office supplies expense, correctly made out for $125 and clearing the bank for this amount, was recorded in the company records as $152. Check deduction error of $27 d. $20 for March service charges were recorded on the bank statement but not in the company records. e. A cancelled check for $250 belonging to Global Corp. but charged by the bank to Gladstone Ltd. was included with the cancelled checks returned by the bank. f. There were $622 of outstanding checks at March 31. g. The bank collected a note receivable for $300 on March 31 including interest of $50. The bank charged Gladstone Ltd. a $10 service charge that also is not included in the company records. Required: Prepare a bank reconciliation and record all necessary adjusting entries at March 31, 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please balance, if unable to balance please explain
Transcribed Image Text:CP 7-3
The Cash general ledger account balance of Gladstone Ltd. was $2,531
at March 31, 2019. On this same date, the bank statement had a
balance of $1,500. The following discrepancies were noted:
a. A deposit of $1,000 made on March 30, 2019 was not yet recorded
by the bank on the March statement.
b. A customer's check amounting to $700 and deposited on March 15
was returned NSF with the bank statement.
c. Check #4302 for office supplies expense, correctly made out for
$125 and clearing the bank for this amount, was recorded in the
Check deduction error of $27
company records as $152.
d. $20 for March service charges were recorded on the bank statement
but not in the company records.
e. A cancelled check for $250 belonging to Global Corp. but charged by
the bank to Gladstone Ltd. was included with the cancelled checks
returned by the bank.
f. There were $622 of outstanding checks at March 31.
g. The bank collected a note receivable for $300 on March 31 including
interest of $50. The bank charged Gladstone Ltd. a $10 service
charge that also is not included in the company records.
Required: Prepare a bank reconciliation and record all necessary
adjusting entries at March 31, 2019.
Expert Solution
Step 1 Introduction
The difference between the cash book balance and bank book balance due to some extra transactions in the bank account like cheque issued but not collected and cheque received but dishonored, bank charges, interest on the deposit amount, and so on.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education