Question

Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,166. The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,598 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.

1. The bank erroneously cleared a $460 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems.
2. On March 25, the bank statement lists a $43 charge for the safety deposit box. Santana has not yet recorded this expense.
3. On March 26, the bank statement lists a $104 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense.
4. On March 31, the bank statement lists $38 interest earned on Business Solutions’s checking account for the month of March. Santana has not yet recorded this revenue.
5. S. Rey notices that the check she issued for $137 on March 31, 2020, has not yet cleared the bank.
6. S. Rey verifies that all deposits made in March do appear on the March bank statement.

Required:

1. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2020.

Answer 1

Answer $67,598 Bank Statement Balance Add: Bank Error $460 $38 BUSINESS SOLUTIONS Bank Reconciliation March, 31 2020 $67,166 Book Balance Add: Bank Interest $460 $67,626 Deduct: Safety deposit rental Charge for checks $137 $38 $67,636 Deduct: Outstanding checks $137 $43 $104 $147 Adjusted Bank Balance $67,489 Adjusted Book Balance $67,489