Question

Emirates College of Technology We repure ar l a Group Work #2 Question : bank reconciliation statement RED TECH developed the following information in recording its bank statement for the month of March Balance per books March 31 Balance per bank statement March 31 $ 8,905 $10,900 (1) Checks written in March but still outstanding $4,000. OU (2) Checks written in February but still outstanding $2,800. (3) Deposits of March 30 and 31 not yet recorded by bank $5,200. (4) NSF check of customer returned by bank $1,200. (5) Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549. (6) Bank service charge for March was $50. (7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March. (8) The bank collected a note receivable for the company for $1.000 plus $150 interest revenue. Instructions: Prepare bank reconciliation for RED TECH at March 31. 8906 Per Bank statement Per Book statement balance at the bank book of Charges of fees outstanding checks Deposit Transit + Error

Answer 1

RED TECH
Bank Reconciliation
March 31
Per Bank Statement			Per Book Statement
Balance at the Bank	$10,900		Balance in the Book	$8,905
			Add: Collection of Note rec. including interest	$1,150
Add: Deposit in Transit	$5,200		Error in recording	$540
	$16,100			$10,595
Less: Outstanding check	$6,800		Less: NSF Check	$1,200
			Error in recording	$45
			Service Charges	$50
Adjusted balance	$9,300		Adjusted balance	$9,300