A $2,875 deposit made on March 30 does not appear on the bank statement.

* Check 358 for $485 issued on March 29 and Check 359 for $1,650 issued on March 30 have not yet been paid by the bank.

* A credit memorandum shows that the bank has collected a $1,100 note receivable and interest of $110 for the firm.

* A service charge of $25 appears on the bank statement.

* A debit memorandum shows an NSF check for $525. (The check was issued by Dane Smithy, a credit customer.)

* The firm's records indicate that Check 341 of March 1 was issued for $900 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $800.

* The bank made an error by deducting a check for $560 issued by another business from the balance of Home Decorating Pavilion's account.

1. Prepare a bank reconciliation statement for the firm as of March 31, 2010.

2. Record entries for any items on the bank reconciliation statement that must be journalized.

Answer rating: 100% (QA)

A Prepare a bank reconciliation statement for the firm as of M... View the full answer