
Concept explainers
Concept Introduction:
Bank Reconciliation:
Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares
Requirement-1:
To Prepare:
The Bank reconciliation Statement.

Answer to Problem 31BE
The Bank reconciliation Statement is as follows:
Zing Corp. | |||||||||
Bank Reconciliation Statement | |||||||||
As of April 30, 2020 | |||||||||
Bank Side | Book Side | ||||||||
Balance as per Bank statement | $ 74,350 | Balance as per | $ 72,329 | ||||||
Add: | Add: | ||||||||
Deposit in transit | $ 2,100 | Collection of Note and interest | $ 3,090 | ||||||
Interest Earned | $140 | ||||||||
Check Error | $ 36 | $ 3,266 | |||||||
Less: | Less: | ||||||||
Outstanding Checks | $ 1,400 | NSF Check | $470 | ||||||
Bank Service Charges | $ 75 | $ 545 | |||||||
Reconciled Balance | $ 75,050 | Reconciled Balance | $ 75,050 |
Explanation of Solution
The Bank reconciliation Statement is explained as follows:
Zing Corp. | |||||||||
Bank Reconciliation Statement | |||||||||
As of April 30, 2020 | |||||||||
Bank Side | Book Side | ||||||||
Balance as per Bank statement | $ 74,350 | Balance as per Cash Book | $ 72,329 | ||||||
Add: | Add: | ||||||||
Deposit in transit | $ 2,100 | Collection of Note and interest | $ 3,090 | ||||||
Interest Earned | $140 | ||||||||
Check Error (773-737) | $ 36 | $ 3,266 | |||||||
Less: | Less: | ||||||||
Outstanding Checks | $ 1,400 | NSF Check | $470 | ||||||
Bank Service Charges | $ 75 | $ 545 | |||||||
Reconciled Balance | $ 75,050 | Reconciled Balance | $ 75,050 |
Concept Introduction:
Bank Reconciliation:
Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side
Requirement-2:
To Prepare:
The necessary

Answer to Problem 31BE
The necessary adjusting entries are as follows:
Zing Corp. | ||||
Bank Reconciliation | ||||
Date | Accounts titles and Explanation | Debit | Credit | |
Apr. 30 | Cash | $ 3,090 | ||
Interest Receivable | $ 90 | |||
Notes Receivable | $ 3,000 | |||
Apr. 30 | Cash | $140 | ||
Interest Income | $140 | |||
Apr. 30 | Cash | $ 36 | ||
Accounts Payable | $ 36 | |||
Apr. 30 | $470 | |||
Cash | $470 | |||
Apr. 30 | Bank Charges | $ 75 | ||
Cash | $ 75 |
Explanation of Solution
The necessary adjusting entries are explained as follows:
Zing Corp. | ||||
Bank Reconciliation | ||||
Journal Entries | ||||
Date | Accounts titles and Explanation | Debit | Credit | |
Apr. 30 | Cash | $ 3,090 | ||
Interest Receivable | $ 90 | |||
Notes Receivable | $ 3,000 | |||
(Being note collected by bank) | ||||
Apr. 30 | Cash | $140 | ||
Interest Income | $140 | |||
(Being interest earned on bank account) | ||||
Apr. 30 | Cash | $ 36 | ||
Accounts Payable | $ 36 | |||
(Being adjustment made for error in Check) | ||||
Apr. 30 | Accounts Receivable | $470 | ||
Cash | $470 | |||
(Being adjustment made for NSF check) | ||||
Apr. 30 | Bank Charges | $ 75 | ||
Cash | $ 75 | |||
(Being adjustment made for Bank Charges) |
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