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 $68,066. The general ledger Cash account. No. 101. shows an ending cash balance per books of $68,578 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 $520 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 $44 charge for the safety deposit box. Santana has not yet recorded this expense. c. On March 26, the bank statement lists a $109 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 $25 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 $136 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 Bank statement balance Add: Add:

Answer 1

BUSINESS SOLUTIONS
Bank Reconciliation
March 31, 2020
Bank statement balance		68,066	Book balance		68,578
Add:			Add:
Correction of bank error	520		Interest earned	25
		520			25
		$68,586			$68,603
Deduct:			Deduct:
Outstanding check	-136		Safety deposit charge	-44
			Check printing charge	-109
		-136			-153
Adjusted bank balance		$68,450	Adjusted book balance		$68,450

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