Question

Prepare Bank reconciliation report and journalize the necessary adjustments as of March 31^st, 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 31^st is $16,319. Other relevant data are given below:

1. The NSF check was from a customer,
2. The note collected by the bank was a $600, 3 month, 12% note. The bank charged a $13 collection fee. No interest has been accrued.
3. Outstanding checks at March 31^st total $2460.
4. Deposits in transit at March 31^st total $1802.
5. A check for $552, dated March 10, cleared the bank on March 25, was recorded by the company for a payment on account, for $525.
6. Bank has by mistake credited $300 in Company’s account which belongs to another company.

Answer 1