Rick's Research Inc.'s books/general ledger indicate a balance of $3,294.21 in the Cash account at the end of the month. The company's Bank Statement showed a balance of $5,902.48 in Cash at the end of the same month.

(a) Prepare Bank Reconciliation for the month taking into consideration the facts below:

(b) Prepare any Journal Entries that the company may have to make at the end of the month

1.Deposit in transit, $1,591.63

2.The Bank incorrectly deducted a $100.00 for a cheque from the company's account that was written by a different business

3. Cheques: no. 337, $286.00; no. 338, $319.47; no. 339, $83.00; no. 340, $203.14; no. 341, $458.53 were all outstanding at month end.

4. EFT receipt of rent revenue, $900.00 was deposited into the company's Bank account without the company realizing it before month end

5. Bank collected $2,114.00 of cheques on behalf of the company from the Lockbox representing Accounts Receivable payments of $2,000 including interest revenue of $114.00

6. Interest of $28.01 was earned by the company during the month and was deposited into the Bank account. Company did not know about it.

7. Cheque no. 333 for $150.00 was paid to a supplier Brown Corp. by the company to pay off an amount owing, but recorded it as $510.00

8. Bank service charges of $39.25 during the month were charged by the Bank without the knowledge of the company 

9. NSF cheque from L. Ross, $52.00 was returned by the company's Bank

10. EFT automatic payment was made to insurance company during the month for $361.00. Company forgot about this automatic payment at the Bank.

Answer rating: 100% (QA)

Answera Ricks Research Inc Bank Reconciliation Statement As on C... View the full answer