Question

Exercise 4 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 $67,566. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. a) S. Rey notices that the bank erroneously cleared a $500 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 a company named Business Systems. b) On March 25, the bank lists a $50 charge for the safety deposit box expense that Business Solutions agreed to rent from the bank beginning March 25. c) On March 26, the bank lists a $102 charge for printed checks that Business Solutions ordered from the bank. d) On March 31, the bank lists $33 interest earned on Business Solutions's checking account for the month of March. e) S. Rey notices that the check she issued for $128 on March 31, 2018, has not yet cleared the bank. f) S. Rey verifies that all deposits made in March do appear on the March bank statement. g) The general ledger Cash account, No. 101. shows an ending cash balance per books of $68,057 as of March 31 (prior to any reconciliation) that date but do not appear on the July 31 bank statement. Required: a) Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2018. Solution:

Answer 1

Solution:

Business Solutions
Bank Reconciliation Statement
March 31, 2018
Bank Statement balance		$67,566	Book Balance		$68,057
Add:			Add:
Bank Error	$500		Bank Interest	$33
		$500			$33
		$68,066			$68,090
Deduct:			Deduct:
Outstanding Checks	$128		Safety deposit rental	$50
			Charges for Check	$102
		$128			$152
Adjusted Bank Balance		$67,938	Adjusted Cash Balance		$67,938