James Enterprise deposits all cash receipts on the day when they are received and it makes all cash payments by check. Considering the company’s fiscal year to be April-March.

• At the close of business on March 31, its Cash account shows a debit balance of $36,606. The company's bank statement as of March 31 shows an ending cash balance of $31,842. The following information was also available.
• Outstanding checks as of March 31 total $4,522.
• Included with the bank statement was a debit memo in the amount of $70 for service charges.
• Check No. 2519, listed with the canceled checks, was correctly drawn for $805 in payment of a utility bill on March 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $895.
• The March 31 cash receipts of $6,850 were placed in the bank's night depository after banking hours and were not recorded on the March 31 bank statement.
• The bank deducted $2,456 for an NSF check from a customer deposited on March 10.

Required:

1. Prepare the bank reconciliation as of March 31.
2. Prepare the journal entries for the items on the company's bank reconciliation as of March 31.

Answer rating: 100% (QA)

James Enterprise Bank Reconciliation Mar31 Bank stateme... View the full answer