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Carefree company prepared the following bank reconciliation on March 31 Book balance 1,405,000 Add: March 31 deposit 750,000 Collection of note 2,500,000 Interest on note
Carefree company prepared the following bank reconciliation on March 31 Book balance 1,405,000 Add: March 31 deposit 750,000 Collection of note 2,500,000 Interest on note 150,000 3,400,000 Less: Careless company's deposit to our account 1,100,000 Bank service charge 45,000 (1.145,000) Adjusted book balance 3.660.000 Bank balance 5,630.000 Add: Error on check no.175 45,000 Less: Preauthorized payment for water bills 205,000 NSF check 220,000 Outstanding check 1,650,000 (2.075.000) Adjusted Bank balance 3.600.000 Check no.175 was made for the proper amount of 249,000 in payment of account. However it was entered in the cash payments journal as 294,000. the entity authorized the bank to automatically pay its water bills as submitted directly to the bank. Prepare the bank reconciliation using adjusted bank method, book to bank, and bank to book method
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