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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Please balance, if unable to balance please explain

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.
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.

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