Chivalry Company prepared the following bank reconciliation on March 31: Book balance Add: March 31 deposit...

Transcribed Image Text:

Chivalry Company prepared the following bank reconciliation on March 31: Book balance Add: March 31 deposit Collection of note Interest on note Total Less: Cavalry Company's deposit to our account Bank service charge Adjusted book balance Bank balance Add: Error on check No. 175 Total Less: Preauthorized payment for light and water NSF check Outstanding checks Adjusted bank balance 750,000 2,500,000 150,000 1,100,000 5,000 245,000 220,000 1,650,000 1,405,000 3,400,000 4,805,000 1,105,000 3,700,000 5,630,000 45,000 5,675,000 2,115,000 3,560,000 Check No. 175 was made for the proper amount of P249,000 in payment of account. However the check was entered in the cash disbursements journal as P294,000. Chivalry Company authorized the bank to automatically pay its light and water bills as submitted directly to the bank. Required: a. Prepare a corrected bank reconciliation. b. Prepare adjusting entries on March 31. Chivalry Company prepared the following bank reconciliation on March 31: Book balance Add: March 31 deposit Collection of note Interest on note Total Less: Cavalry Company's deposit to our account Bank service charge Adjusted book balance Bank balance Add: Error on check No. 175 Total Less: Preauthorized payment for light and water NSF check Outstanding checks Adjusted bank balance 750,000 2,500,000 150,000 1,100,000 5,000 245,000 220,000 1,650,000 1,405,000 3,400,000 4,805,000 1,105,000 3,700,000 5,630,000 45,000 5,675,000 2,115,000 3,560,000 Check No. 175 was made for the proper amount of P249,000 in payment of account. However the check was entered in the cash disbursements journal as P294,000. Chivalry Company authorized the bank to automatically pay its light and water bills as submitted directly to the bank. Required: a. Prepare a corrected bank reconciliation. b. Prepare adjusting entries on March 31.

Answer rating: 100% (QA)

a Prepare a corrected bank reconciliation Adjusted Book Balance 3700000 Adjusted Bank Balance 356000... View the full answer