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 $67,766. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,222 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 a. 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. b. On March 25, the bank statement lists a $50 charge for the safety deposit box. Santana has not yet recorded this expense. c. On March 26, the bank statement lists a $110 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense. d. On March 31, the bank statement lists $42 interest earned on Business Solutions's checking account for the month of March. Santana has not yet recorded this revenue. e. S. Rey notices that the check she issued for $122 on March 31, 2020, has not yet cleared the bank. f. 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. BUSINESS SOLUTIONS Bank Reconciliation March 31, 2020 Book balance Add: Bank statement balance Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance

Answer 1

BUSINESS SOLUTIONS Bank Reconciliation March 31,2018 $ 67,766 Book Blance Add: 460 Interest eraned $ 68,226 $68,222 Bank statement balance Add: 42 $ $ 68,264 460 $ Bank errors $ $ 42 Deduct: 122 Bank Service Charge Deduct: Outstanding Checks 122 $ 160 $ $ $ 160 $ 68,104 Adjusted bank balance $68,104 Adjsuted Book Balance $50+$110 = $160 Bank service Charge