Question

17.You are to prepare the bank reconciliation of Tree Company at March 31, using the following...

17.You are to prepare the bank reconciliation of Tree Company at March 31, using the following supplementary information: (a.) Deposit in transit at March 31, $4,880 (b.) The following checks were issued by Tree in payment of utilities but these checks had not been cleared by the bank as of March 31: no. 120, $140; no. 121, $932; no. 127, $307; no. 134, $1,200. (c.) Service charge by bank, $50. (d.) A note receivable for $4,050 left by Tree Company with bank for collection that had been collected and credited to company's account. No interest involved. (e.) A check for $70 drawn by a customer, but deducted from Tree 's account by the bank and returned with the notation "NSF." (f.) Tree 's check no. 480, issued in payment of $980 worth of office equipment, correctly written in the amount of $980 but erroneously recorded in Tree's accounting records as $890. (g.)At March 31, the balance of the Cash account according to the records of Tree Company was $5,261. (h.)The March 31 bank statement showed a balance of ?. What is unadjusted balance per bank statement at March 31?(3 Points)

$6,908

some other amount

$6,800

$7,088

Homework Answers

Answer #1

Answer:

Determination of unadjusted balance per bank statement on March 31:

Particulars Amount
Balance as per cash account records $5,261
Deposit in transit ($4,880)
In respect of cheque issued but not cleared by the bank:
Cheque No. 120 $140
Cheque No. 121 $932
Cheque No. 127 $307
Cheque No. 134 $1,200 $2,579
Service charges levied by the bank ($50)
Collection of the note receivable by the bank $4,050
Cheque return with the notation "NSF" ($70)
Erroneously recording of office equipment ($90)
Balance as per bank statement $6,800

Therefore, Option (c) i.e. $6,800 is the correct answer.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bank reconciliation Prepare a bank reconciliation as of October 31 from the following information: a. The...
Bank reconciliation Prepare a bank reconciliation as of October 31 from the following information: a. The October 31 cash balance in the general ledger is $1,688. b. The October 31 balance shown on the bank statement is $746. c. Checks issued but not returned with the bank statement were No. 462 for $26 and No. 483 for $100. d. A deposit made late on October 31 for $900 is included in the general ledger balance but not in the bank...
The following information is provided for preparing bank reconciliation for Rush Company as of December 31....
The following information is provided for preparing bank reconciliation for Rush Company as of December 31. 1. The cash ledger account of Rush Company reveals an ending balance of $8,374.33 as of December 31. 2. Comparison of the company’s records and the bank statement for December indicates that, the following checks are issued and appear in the company’ records but are not listed among the paid checks by the bank: Ck.no.423 $125 Ck.no.424 $387 3. Comparison of the company’s records...
The following information is provided for preparing bank reconciliation for Rush Company as of December 31....
The following information is provided for preparing bank reconciliation for Rush Company as of December 31. 1. The cash ledger account of Rush Company reveals an ending balance of $8,374.33 as of December 31. 2. Comparison of the company’s records and the bank statement for December indicates that, the following checks are issued and appear in the company’ records but are not listed among the paid checks by the bank: Ck.no.423 $125 Ck.no.424 $387 3. Comparison of the company’s records...
Prepare Bank reconciliation report and journalize the necessary adjustments as of March 31st, 2017 for Company...
Prepare Bank reconciliation report and journalize the necessary adjustments as of March 31st, 2017 for Company “R”; its bank statement for March shows the following data:                                 Balance 3/1                              $15,650                            Balance 3/31                                $17,580 Debit memorandum:                                                         Credit memorandum:          NSF check                           $275                                    Collection of note receivable    $605 The cash balance per books at March 31st is $16,319. Other relevant data are given below: The NSF check was from a customer, The note collected by the bank was a $600, 3 month,...
The accountant of BWS Company has compiled the following information for preparing a bank reconciliation for...
The accountant of BWS Company has compiled the following information for preparing a bank reconciliation for the company as of September 31, 2019: - A deposit of $9,366 on September 31 does not appear in the bank statement. - As of September 31, cash per the bank statement is $41,631. - Among the paid checks accompanied in the bank statement is the Check No: 113 for $1,512 which is paid by the bank erroneously although this check is not written...
The following information is available to assist you in preparing a bank reconciliation for Racine Rentals...
The following information is available to assist you in preparing a bank reconciliation for Racine Rentals on March 31: The balance on the March 31 bank statement is $6,506.10. Not included on the bank statement is a $423 deposit made by Racine's late on March 31. A comparison between the canceled checks listed on the bank statement and the company records indicated that the following checks are outstanding at March 31: No. 112 $42.92 No. 117 307.00 No. 120 10.58...
Santana Rey receives the March bank statement for Business Solutions on April 11, 2018. The March...
Santana Rey receives the March bank statement for Business Solutions on April 11, 2018. The March 31 bank statement shows an ending cash balance of $67,366. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. S. Rey notices that the bank erroneously cleared a $470 check against her account in March that she did not issue. The check documentation included with the bank statement shows that this check was actually issued by...
Iverson Company’s bank statement shows a cash balance of $830 at March 31, 2020. (This is...
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...
March 31, 2019Balance on bank statementAdditions:Deductions:Total deductionsAdjusted bank balanceBalance in booksAdditions:Deductions:Adjusted book balance Di Stefano Office...
March 31, 2019Balance on bank statementAdditions:Deductions:Total deductionsAdjusted bank balanceBalance in booksAdditions:Deductions:Adjusted book balance Di Stefano Office Supply Company received a bank statement showing a balance of $70,005 as of March 31, 2019. The firm’s records showed a book balance of $71,487 on March 31. The difference between the two balances was caused by the following items. A debit memorandum for $40, which covers the bank’s collection fee for the note (item 6). A deposit in transit of $4,700. A check...
Odum Corporation’s cash account showed a balance of $17,100 on March 31, 2016. The bank statement...
Odum Corporation’s cash account showed a balance of $17,100 on March 31, 2016. The bank statement balance for the same date indicated a balance of $17,821.55. The following additional information is available concerning Odum’s cash balance on March 31: • Undeposited cash on hand on March 31 amounted to $724.50. • A customer’s NSF check for $175.80 was returned with the bank statement. • A note for $2,000 plus interest of $25 was collected for Odum by the bank during...