Question

Di Stefano Office Supply Company received a bank statement showing a balance of $67,605 as of March 31, 2019. The firm’s records showed a book balance of $69,439 on March 31. The difference between the two balances was caused by the following items.

1. A debit memorandum for $42, which covers the bank’s collection fee for the note (item 6).
2. A deposit in transit of $3,300.
3. A check for $240 issued by another firm that was mistakenly charged to Di Stefano’s account.
4. A debit memorandum for an NSF check of $6,095 issued by Wozniak Construction Company, a credit customer.
5. Outstanding checks: Check 3782 for $1,800; Check 3840 for $143.
6. A credit memorandum for a $5,900 noninterest-bearing note receivable that the bank collected for the firm.

Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the

Next I have to prepare a general journal recording the following entries, Whatever does not need to be recorded we must indicate no journal entry required.

• 1

  Record the bank collection fee.

• 2

  Record the deposit in transit.

• 3

  Record the check incorrectly charged.

• 4

  Record the returned check.

• 5

  Record the outstanding checks.

• 6

  Record note collected by the bank.

I STEFANO SUPPLY C Bank March 31, 2019 Balance on bank statement Additions Deposit in transit Check incorractly charged Deductions Total deductions Adjusted bank balance Balance in books Additions Deductions Adjusted book balance

Answer 1

	Bank Reconciliation
Balance on bank statement					67,605
Addittions:
Deposit in transit				3,300
Error made by bank				240
					3,540
					71,145
Deductions:
Checks oustanding
chq not 3782				1800
chq not 3840				143
Total deductions					1943
Adjusted bank balance					69,202
Balance in books					69,439
Addittions
note receivable				5,900
					5,900
					75,339
Deductions:
Bank fee expense				42
NSF				6,095
					6,137
Adjusted book balance					69,202

			General Journal
date						debit	credit
1)	Bank fee expense					42
	cash						42
2)	No journal entry
3)	No journal entry
4)	Accounts receivable-Wozniak construction company					6,095
	Cash						6,095
5)	no journal entry
6)	Cash					5,900
	notes receivable						5,900