Problem 7-9A Bank Reconciliation with Journal Entries *Assignment

Other Journal Entries Required:

Record the April bank service charges.

Record the April interest expense.

Record the April payment on note.

Record the investment by owner.

Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: Stewart Recording Studio Bank Reconciliation March 31, 2020 $22,100 Book balance $30,945 Bank statement balance Add: Deposit of March 31 in transit 10,000 $32, 100 Deduct: Outstanding cheques : #14 #22 Adjusted bank balance $840 315 1,155 $30,945 Adjusted book balance $30,945 Cash Explanation Acct. No. 101 Balance PR Debit Credit Date 2020 March 31 April 30 30 Balance CR17 CD13 71,440 30,945 102,385 11,213 91,172 A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below: Deposits Made April 7 13 18 23 27 30 Total April Cash Receipts $ 690 4,600 5,900 13,900 1,750 44,600 $71,440 Cheques Written No. 23 24 25 26 27 28 29 30 31 32 $ 5,200 3,150 940 310 4,230 4,900 19,630 41,000 412 11,400 $91,172 Total April Cash Disbursements The following bank statement is available for April: Bank Statement To: Stewart Recording Studio Cheques/Charges Deposits/Credits #31 04/03 #28 04/07 #26 04/13 NSF 04/18 #24 04/23 #23 04/27 #29 04/30 PMT 04/30 INT 04/30 SC 04/30 NSF = Not Sufficient Funds 412 9,400 310 14,200 3,150 5,200 19,630 15,900 450 175 SC = Service Charge 04/03 04/07 04/13 04/18 04/23 04/27 04/30 10,000 690 4,600 5,900 13,900 1,750 120,000 April 30, 2020 Bank of Canada Balance 22,100 31,688 22,978 27,268 18,968 29,718 26,268 126,638 110,738 110,288 110,113 INT = Interest on Bank Loan PMT = Payment of Principal on the loan a. Prepare a bank reconciliation for Stewart Recording Studio at April 30. STEWART RECORDING STUDIO Bank Reconciliation April 30, 2020 Bank Statement Company's Books Bank statement balance Add: Book balance Add: 0 0 Deduct: Deduct: Outstanding cheques: 0 0 Adjusted bank balance Adjusted book balance Journal entry worksheet