a). Prepare a bank reconciliation to the correct cash balance at March 31. 

b). Prepare journal entries required to adjust the cash account at March 31.

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On March 31, Sarasota Corporation showed a cash balance on their books of $14,100. The bank statement from the company's bank showed a month end balance of $17,520. On reviewing the bank statement, the following items were discovered: 1. A deposit made on March 29 for $4,600 did not appear on the bank statement. 2. Cheques written in the month of March but that did not appear on the bank statement were as follows: Cheque # 6341 $4,560 Cheque # 6342 Cheque # 6346 Cheque # 6347 Cheque # 6348 330 47 1,080 880 3. The bank credited Sarasota's account for $560 on March 19. This deposit did not belong to Sarasota, but belonged to another company and was posted in error. 4. The bank statement showed receipt of a wire transfer of $1,000 in payment of a note receivable, as well as $90 interest. 5. According to the bank statement, $47 was deducted from Sarasota's account for service charges. 6. The bank cleared cheque # 6281 for $1,060; however, the cheque was recorded in Sarasota's records at $880. Research showed the bank was correct, and the cheque was recorded incorrectly in Sarasota's books. The cheque was written in payment of rent. 7. A cheque for $300 from one of Sarasota's customers was rejected by the bank due to insufficient funds (NSF). On March 31, Sarasota Corporation showed a cash balance on their books of $14,100. The bank statement from the company's bank showed a month end balance of $17,520. On reviewing the bank statement, the following items were discovered: 1. A deposit made on March 29 for $4,600 did not appear on the bank statement. 2. Cheques written in the month of March but that did not appear on the bank statement were as follows: Cheque # 6341 $4,560 Cheque # 6342 Cheque # 6346 Cheque # 6347 Cheque # 6348 330 47 1,080 880 3. The bank credited Sarasota's account for $560 on March 19. This deposit did not belong to Sarasota, but belonged to another company and was posted in error. 4. The bank statement showed receipt of a wire transfer of $1,000 in payment of a note receivable, as well as $90 interest. 5. According to the bank statement, $47 was deducted from Sarasota's account for service charges. 6. The bank cleared cheque # 6281 for $1,060; however, the cheque was recorded in Sarasota's records at $880. Research showed the bank was correct, and the cheque was recorded incorrectly in Sarasota's books. The cheque was written in payment of rent. 7. A cheque for $300 from one of Sarasota's customers was rejected by the bank due to insufficient funds (NSF).

Answer rating: 100% (QA)

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