Chapter 4, Problem 31BE

To determine

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-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 Cash Book		$ 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

To determine

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 adjusting entries.

Answer to Problem 31BE

The necessary adjusting entries are 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
Apr. 30	Cash	$140
	Interest Income		$140
Apr. 30	Cash	$ 36
	Accounts Payable		$ 36
Apr. 30	Accounts Receivable	$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)