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 statement Complete this question by entering your answers in the tabs below. Der General

Answer 1

Bank reconciliation

Bank balance		67,605
Add : Deposit in transit	3,300
Correction of bank error	240
		3,540
		71,145
Less : outstanding checks
check 3782	-1,800
check 3,840	-143
		-1,943
Adjusted bank balance		$69,202
Book balance		69,439
Add :
collection of note receivable		5,900
		75,339
Less :
Bank collection fee	-42
NSF check	-6,095
		-6,137
Adjusted Book balance		$69,202

Journal

Date	Account Title and Explanation	Debit	Credit
Mar 31	Bank collection fee	42
	Cash		42
Mar 31	Account receivable - Wozniak construction company	6,095
	Cash		6,095
Mar 31	Cash	5,900
	Note receivable		5,900

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