Question

Bank Reconciliation and Adjusting Entries (Appendix 6.1) Odum Corporation's cash account showed a balance of $17,198 on March 31, 2019. The bank statement balance for the same date indicated a balance of $17,924.55. The following additional information is available concerning Odum's cash balance on March 31 Undeposited cash on hand on March 31 amounted to $724.50. A customer's NSF check for $173.80 was returned with the bank statement A note for $2,000 plus interest of $25 was collected for Odum by the bank during March. The bank notified Odum of this collection on the bank statement The bank service charge for March was $15 A deposit of $951.75 mailed to the bank on March 31 did not appear on the bank statement.

Answer 1

1]	BANK RECONCILIATION STATEMENT
	Balance from bank statement		$    17,924.55
	Add:
	Undeposited cash on hand	$         724.50
	Deposit in transit	$         951.75	$      1,676.25
			$    19,600.80
	Deduct:
	Outstanding checks [57.40+147.50+214.80+191.90]	$         611.60	$         611.60
	Adjusted cash balance		$    18,989.20
	Balance from company records		$    17,198.00
	Add:
	Note collected	$      2,000.00
	Interest on note	$           25.00	$      2,025.00
			$    19,223.00
	Deduct:
	Mistake in check (194.50-149.50)	$            45.00
	NSF check	$      173.80
	Service charge	$            15.00	$         233.80
	Adjusted cash balance		$    18,989.20
2]
2019	Cash	$            2,025
Mar-31	Notes receivable		$    2,000.00
	Interest income		$           25.00
	[To record note collected with interest]
Mar-31	Accounts receivable	$           45.00
	Accounts receivable	$         173.80
	Cash		$          218.80
	[To record mistake in check and NSF check]