Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. On March 31, 2021, the Cash account of Rose Petal (RP) had a balance of $39,594. On that date, the bank statement indicated a

1. On March 31, 2021, the Cash account of Rose Petal (RP) had a balance of $39,594. On that date, the bank statement indicated a balance of $50,366.

2. There was an $8 service charge on the bank statement.

3. The bank has not credited the company's account for a $4,200 deposit made on March 30 and a $4,700 deposit made on March 31.

4. After reviewing the February 28, 2021 bank reconciliation, cheque #568 for $3,450 written to Garden Work's had still not cleared the bank in March.

5. The bank reported an EFT credit memorandum for the collection of a receivable from Cynthia Chan of $6,300. A second credit memoranda was identified for $300 representing interest earned on the bank account.

6. A $1,700 cheque of a customer, Blake Rider, was returned by the bank because of non-sufficient funds. The bank charged RP a $60 NSF fee.

7. The Accounts Payable clerk recorded a rent expense payment of $160 as $1,600. Cheque #572 was correctly written for $160.

8. In checking the disbursements journal, cheques #571 for $4,725 and #583 for $5,225 did not appear on the March bank statement.

Instructions

a) Prepare a bank reconciliation for RP as at May 31, 2021.

b) Prepare the necessary journal entries to adjust RP's records based on the bank reconciliation.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles A Systems Based Approach

Authors: Howard F. Stettler

5th Edition

0130517224, 9780130517227

More Books

Students also viewed these Accounting questions