Question

The bank portion of last month's bank reconciliation for Ivanhoe Ltd. at February 28 was as follows: IVANHOE LTD. Bank Reconciliation February 28 Cash balance per bank Add: Deposits in transit $17,834 3,129 20,963 Less: Outstanding cheques #3451 #3470 Reconciled cash balance $1,972 2,117 4,089 $16,874 The reconciled cash balance per bank agreed with the reconciled cash balance per books after the bank reconciliation at February 28. The March bank statement showed the following: Amounts Added to Account (Credits) Balance 17,834 15,862 3,129 2,117 IVANHOE LTD. Bank Statement March 31 Amounts Deducted from Date Description Account (Debits) Feb. 28 Opening balance Mar. 1 Cheque, No. 3451 1,972 1 Deposit 2 Cheque, No. 3470 4 Deposit 9 Cheque, No. 3471 1,692 10 Returned cheque-NSF, J. Mustafa 874 10 NSF fee 35 15 EFT, loan payment 1,207 19 Cheque, No. 3472 1,823 26 Deposit 31 EFT, collection on account from M. Boudreault 31 Bank service charges and credit card fees 1,957 16,874 18,831 17,139 16,265 16,230 15,023 13,200 16,482 3,282 614 17,096 17,006
prepare the bank reconciliation at March 31 and any journal entries required from the reconciliation.

Answer 1

Bank reconciliation statement for the month ending Mar 31: a. Step 1: Ivanhoe Ltd. Bank Reconciliation Statement as at Mar 31 $17,006 Cash balance per bank Add: $4,034 1. Deposits in transit 2. Checks paid incorrectly recorded ($1,823-$1,283) $540 $4,574 $21,580 Less: 1. Outstanding checks ($4,962) Corrected balance as per bank $16,618

b. Step 2: Ivanhoe Ltd. Bank Reconciliation Statement as at Mar 31 Cash balance per books $18,210 Add: $614 1. EFT collection directly from customer $18,824 Less: 1. Bank service charges $90 $1,207 2. EFT loan payment with interest $909 $2,206 3. Returned NSF Check+ Fee Corrected balance as per books $16,618

Account Titles and Explanation Credit Debit Date $614 Mar 31 Cash $614 Accounts Receivable- M. Boudreault (To record EFT colle ctions) Bank service charges $90 Mar 31 $90 Cash (Torecord bank charges and fees) $909 Mar 31 Accounts Receivable-J. Mustafa $909 Cash (To record NSF cheque and fee) $1,123 $84 Mar 31 EFT Loan Interest Expense $1,207 Cash (To record EFT loan payment)