Question

Problem 2 (25 points) At March 31, the balance of the Cash account according to the records of $17,309. The March 31 bank statement showed a balance of $12,360. You are to prepare the bank reconciliation of Lincoln Company at March 31, using the following supplementary information Lincoln Company was (a.) Deposit in transit at March 31, $6,309. (b.) Outstanding checks: no. 110, $121; no. 111, $209; no. 122, $365; (c.) Service charge by bank, $50. (d.) A note receivable for $2,445 left by Lincoln Company with bank for collection that had been collected and credited to company's account. No interest involved. (e.) A check for $1,630 drawn by a customer, Marc Houdini, but deducted from Lincoln's account by the bank and returned with the notation "NSF." (f.) Lincoln's check no. 320, issued in payment of $670 worth of office equipment, correctly written in the amount of $670 but erroneously recorded in Lincoln's accounting records as $570. 1. Shown below is partially completed bank reconciliation for Lincoln Company at March 31, 2018 as well as additional data necessary to answer the questions that follow. (15 points) Lincoln Company Bank Reconciliation March 31, 2018 nd Balance per bank statement, March 3. Add Less: Adjusted balance $ 12,360 15. ds the $ 17,309 Balance per depositor's records, March 31.. Add: Less:

Answer 1

Balance per bank statement, March 31	$        12,360
Add: Deposit in transit	$          6,309
Less: Outstanding checks	$              695
Adjusted balance	$        17,974
Balance per depositor's records, March 31	$        17,309
Add:
Note receivable collected by bank	$          2,445
	$        19,754
Less:
Service charges	$                50
NSF check	$          1,630
Mistake in check No 320	$              100
Adjusted balance	$        17,974