Bank Reconciliation The following information is available to assist you in preparing a bank reconciliation for Four Star Entertainment on March 31: a. The balance on the March 31 bank statement is $6,506.10. b. Not included on the bank statement is a $423 deposit made by Four Star late on March 31. c. A comparison between the canceled checks listed on the bank statement and the company records indicated that the following checks ar outstanding at March 31: No. 112 $42.92 No. 117 307.00 No. 120 10.58 No. 122 84.33 d. The bank acts as a collection agency for checks returned for insufficient funds. The March bank statement indicates that one such check amount of $45.00 was collected and deposited and a collection fee of $12.93 was charged. e. Interest earned on the checking account and added to Four Star account during March was $4.30. Miscellaneous bank service charges a to $22. f. A comparison between the deposits listed on the bank statement and the company's books revealed that a customer's check in the amo $1,250 appears on the bank statement in March but was never added to the customer's account on the company's books. 9. The comparison of checks cleared per the bank statement with those per the books revealed that the wrong amount was charged to the account for a check. The amount of the check was $990. The proof machine encoded the check in the amount of $909, the amount cha against the company's account. Required: d. The bank acts as a collection agency for checks returned for insufficient funds. The March bank statement indicates that one such check in the amount of $45.00 was collected and deposited and a collection fee of $12.93 was charged. e. Interest earned on the checking account and added to Four Star account during March was $4.30. Miscellaneous bank service charges amounted to $22. f. A comparison between the deposits listed on the bank statement and the company's books revealed that a customer's check in the amount of $1,250 appears on the bank statement in March but was never added to the customer's account on the company's books. g. The comparison of checks cleared per the bank statement with those per the books revealed that the wrong amount was charged to the company's account for a check. The amount of the check was $990. The proof machine encoded the check in the amount of $909, the amount charged against the company's account. Required: Enter all amounts rounded to the nearest cent. 1. Determine the balance on the books before any adjustments as well as the corrected balance to be reported on the balance sheet Four Star Entertainment Bank Reconciliation March 31 Balance per bank statement, March 31 Add: Deposit in transit Deduct: Outstanding checks: No. 112 No. 117 No. 120 No. 122 Bank error Adjusted balance, March 31 Balance per books, March 31 Add: Customer check collected Add: Interest earned on account Add: Customer check not recorded Deduct: Collection fee S Deduct: Bank service charges Adjusted balance, March 31
