Question

Di Stefano Office Supply Company received a bank statement showing a balance of $67,805 as of March 31, 20X1. The firm’s records showed a book balance of $69,463 on March 31. The difference between the two balances was caused by the following items.

1. A debit memorandum for $46, which covers the bank’s collection fee for the note (item 6).
2. A deposit in transit of $3,500.
3. A check for $244 issued by another firm that was mistakenly charged to Di Stefano’s account.
4. A debit memorandum for an NSF check of $6,115 issued by Wozniak Construction Company, a credit customer.
5. Outstanding checks: Check 3782 for $2,000; Check 3840 for $147.
6. A credit memorandum for a $6,100 noninterest-bearing note receivable that the bank collected for the firm.

Required:

1. Prepare a bank reconciliation statement for the firm as of March 31.
2. Prepare the necessary journal entries for March 31, 20X1 from the statement.

Answer 1

Bank reconciliation

Balance as per Bank Statement		67805
Add: Deposit in transit	3500
Error in check	244	3744
		71549
Less: Outstanding checks (		-2147
Adjusted balance		69402
Balance as per Book balance		69463
Add: Collection from notes receivable		6100
		75563
Less: Bank charge	-46
NSF Check	-6115
		-6161
Adjusted balance		69402

Adjusting entry

Date	General Journal	Debit	Credit
Mar 31	Cash	6100
	Notes receivable		6100
	(To record collection)
Mar 31	Bank charges	46
	Cash		46
	(To record bank charge)
Mar 31	Account receivable	6115
	Cash		6115
	(To record NSF check)