Question: On March 31 2014 Taggert Company had a cash balance

On March 31, 2014, Taggert Company had a cash balance per books of $5,174.20. The statement from Western Bank on that date showed a balance of $6,041.40. A comparison of the bank statement with the cash account revealed the following facts.
1. The bank service charge for March was $28.
2. The bank collected a note receivable of $2,000 for Taggert Company on March 15, plus $115 of interest. The bank made a $20 charge for the collection. Taggert has not accrued any interest on the note.
3. The March 31 receipts of $1,481.60 were not included in the bank deposits for March. These receipts were deposited by the company in a night deposit vault on March 31.
4. Company check No. 1245 issued to T. Gilroy, a creditor, for $672 that cleared the bank in March was incorrectly entered in the cash payments journal on March 8 for $627.
5. Checks outstanding on March 31 totaled $1,360.00.
6. On March 31 the bank statement showed an NSF charge of $1,033.20 for a check received by the company from R. Fross, a customer, on account.

(a) Prepare the bank reconciliation as of March 31.
(b) Prepare the necessary adjusting entries at March 31.

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  • CreatedApril 07, 2014
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