An examination of the accounting records and the bank statement of the Evans Company at 31 March
Question:
An examination of the accounting records and the bank statement of the Evans Company at 31 March provides the following information:
i The Cash account has a balance of \(\$ 6351.98\).
ii The bank statement shows a bank balance of \(\$ 3941.83\).
iii The 31 March cash receipts of \(\$ 3260.95\) were deposited in the bank at the end of that day but were not recorded by the bank until 1 April.
iv Cheques issued and mailed in March but not included among the cheques listed as paid on the bank statement were:
v A bank service charge of \(\$ 30\) for March was deducted on the bank statement.
vi A cheque received from a customer for \(\$ 185\) in payment of his account and deposited by the Evans Company was returned marked 'NSF' with the bank statement.
vii Interest of \(\$ 20.42\) earned on the business' cheque account was added on the bank statement.
viii The Evans Company discovered that cheque no. 701, which was correctly written as \(\$ 562\) for the March rent, was recorded as \(\$ 526\) in the business' accounts.
Required:
a Prepare a bank reconciliation on 31 March.
b Record the appropriate adjustments in the business' accounts. Calculate the ending balance in the Cash account.
Step by Step Answer:
Accounting Information For Business Decisions
ISBN: 9780170253703
2nd Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons