Question

Iverson Company’s bank statement shows a cash balance of $830 at March 31, 2020. (This is

the unadjusted cash balance per bank records.) The company’s records show a cash balance of

$390 at March 31, 2020. (This is the unadjusted cash balance per books at March 31, 2020.)

The Company’s records reveal the following information for the month of March 2020.

1. Outstanding Deposits: $840 (This means that the company deposited $840, but this amount

has not yet been recorded by the bank and the deposit does not appear on the bank

statement.)

2. Outstanding checks: $390 (This means that the company paid out $390 in checks and these

checks have not yet cleared the bank and have not been recorded by the bank.)

3. Bank service charges for March: $30.

4. The bank collected a note receivable for the company for $1,200 plus $48 interest revenue.

5. Non-Sufficient Funds Checks (NSF): $328 (This means that customers paid Iverson by

check and the customers did not have enough cash in their accounts to pay for their checks.

In other words, the customers’ checks “bounced.”)

Instructions

Prepare Iverson’s bank reconciliation at March 31, 2020.

Answer 1

Iverson Company

Bank Reconciliation Statement

Year ended March 31.2020

Particulars	$	$
Cash balance as per bank statement, March 31,2020		830
Add: Outstanding Deposit		840
Less: Outstanding Cheque		390
Adjusted Cash Balance		1,280
Balance as per depositor's record, March 31,2020		390
Add: Amount collected by bank for note receivable and interest($1,200+$48)		1,248
Less:NSF cheque	328
Bank service Charge	30	358
Adjusted Cash Balance		1,280