Question

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 for $348 issued by another firm that was mistakenly charged to Di Stefano’s account.

A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.

Outstanding checks: Check 3782 for $2,200; Check 3840 for $251.

A credit memorandum for a $7,300 noninterest-bearing note receivable that the bank collected for the firm.

Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.

Answer 1

	ans 1
	Bank Reconciliation as on March 31
	Balance as per bank		$70,005
	Additions:   Deposit in Transit	$4,700
	Error made by bank	348
			5048
	Deductions		$75,053
	Outstanding ckecks
	Check 3782	2200
	Check 3840	251	2451
	Adjusted Bank Balance		$72,602.00
	Company's Book
	Book balance		71487
	Add
	Proceeds of note receivable	7300
			7300
			78787
	Deductions
	Miscelleneous expenses	40
	NSF	6145	6185
	Adjusted Book balance		72602
	ans 2
Trans	Accounts Tilte	Dr	Cr
31-Mar
a	Cash	$7,300
	Notes Receivable		$7,300
b	Accounts receivable	$6,145
	Cash		$6,145
c	Miscelleneous expenses	40
	Cash		40