Question

Additional data Beverly deposits all cash receipts in the bank and makes all payment The Cash account of Beverly Associates at February 28, 2019. foliows: Click the icon to view the Cash account) Beverly Associates received the following bank statement on February 28, 2019 Click the icon to view the February bank statement) Read the requirements Requirement 1. Prepare the bank reconciliation of Beverly Associates February 28, 2019 Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation Beverly Associates Bank Reconciliation February 28, 2019 Data Table Cash Beg Bal Feb. 8 Feb 15 Feb 23 Feb 28 4,445 1.400 2.400 350 Feb. 3 2.000 Feb. 12 1.200 Feb. 19 300 Feb 25 1500 27 2.800 6,505 End Bal Prim [Dono Cho G r y number the routes and continue to the next question

Answer 1

Solution Required 1: Beverly Associates Bank Reconciliation February 28, 2019 Bank: Balance, February 28, 2019 Add: Deposit in transit (Deposit of Feb. 28) $5,404 $2,800 $8,204 Less: Outstanding checks 104 (Feb. 25) 105 (Feb. 27) $300 $1,500 $1,800 Adjusted Bank Balance, February 28, 2019 $6,404 $6,595 Books: Balance, February 28, 2019 Add: EFT collection of note Interest Revenue on cash Balance $1,800 $35 $1,835 $8,430 Less: EFT payment of EZ Rent NSF Check Bank service charges $410 $1,600 $16 $2,026 Adjusted Book Balance, February 28, 2019 L $6,404

Required 2: Credit Date Feb.28 Debit $1,800 | Accounts and Explanation Cash Notes Receivable (To record EFT collection of the note) $1,800 Credit Date Accounts and Explanation Debit Feb.28 Cash $35 Interest revenue (To record the interest earned on company's cash balance) $35 Credit Debit $161 Date Accounts and Explanation Feb.28 Bank Service charges Cash (To record Bank Service charges) $16 Credit Debit $1,600 Date Accounts and Explanation Feb.28 Accounts Receivable Cash (To record NSF check returned from customer) $1,600 Credit Date Accounts and Explanation Feb 28 Rent Expense Cash Debit $410 $410 (To record EFT payment of EZ rent)