Question

E. Delicious Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31 $ 3,664 Balance per bank statement March 31 $10,900 (1) Checks written in March but still outstanding $7,000. (2) Checks written in February but still outstanding $3,100. (3) Deposits of March 30 and 31 not yet recorded by bank $5,200. (4) NSF check of customer returned by bank $1,200. (5) Check No. 210 for $593 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $539. (6) Bank service charge for March was $50. (7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March. (8) The bank collected a note receivable for the company for $3,000 plus $100 interest revenue. Instructions Prepare a bank reconciliation at March 31.

Answer 1

E. Delicious Food Store
Bank Reconciliation
March-31
Bank statement balance	10,900	Book balance	3,664
Add:		Add:
Deposit in transit	5,200	Note collected by bank	3,000
		Interest revenue on note	100
		Correction of book error	540
	16,100		7,304
Less:		Less:
Outstanding check- March	-7,000	Bank service charges	-50
Outstanding check- Feb	-3,100	NSF Check	-1200
		Correction of book error	-54
Adjusted bank balance	$6,000	Adjusted book balance	$6,000

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