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1. Journalize the necessary adjusting entries. [4%] 2. Show the adjustments in the cash account [2%] 3. Prepare the bank reconciliation statement [2%] The cash

1. Journalize the necessary adjusting entries. [4%]

2. Show the adjustments in the cash account [2%]

3. Prepare the bank reconciliation statement [2%]

The cash account for Boston Services at March 31, 20x1, indicated a balance of $2,581.37. The bank statement indicated a balance of $2,009.82 on March 31, 20x1. The records reveal the following differences;

  1. A cheque of $152.02 issued by a customer and deposit on March 19, 20x1 was dishonored.

  2. A cheque for $54 had been incorrectly recorded by business as $45. The cheque was for the payment of amount owing to a creditor for the purchase of offices supplies on account.

  3. Bank service charges for March amounted to $46.36.

  4. The bank had collected $335.14, an amount owing by a debtor.

  5. The following cheques issued by Boston Services had not yet been presented for payment as of March 31.

Cheque Number Amount

288 103.00

312 70.35

316 54.67

317 18.81

  1. A deposit of $595.14, representing receipts of March 31, had been made too late to appear on the bank statement.

  2. A cheque payment for $488 had been incorrectly recorded by the bank as $884.

  3. A cheque for $38 had been incorrectly recorded by business as $83. The cheque was for the payment of amount owing to a creditor for the purchase of equipment on account.

1. Journalize the necessary adjusting entries. [4%]

Journal Jxx

Date

Description

Debit

Credit

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