Question
Dorian Companys records showed the following information for the month of March 2020: Unadjusted Cash balance per Bank Records at March 31: $7,000. Unadjusted Cash
Dorian Companys records showed the following information for the month of March 2020:
Unadjusted Cash balance per Bank Records at March 31: $7,000.
Unadjusted Cash balance per Books at March 31: $5,659
(1) Outstanding Deposits (deposits in transit): $6,000 (This means the deposits have been
recorded by Dorian, but have not yet been recorded by the bank.)
(2) The bank statement shows check printing charges of $40.
(3) Dorian Company used Check #114 to pay a wholesale supplier $248. Although Dorian
Company correctly prepared the check for $248 in making its payment, the company
incorrectly recorded the check as $329 in its cash payments journal (company log of
outgoing checks).
(4) Outstanding checks (checks in transit): $5,800 (This means that the company wrote the
checks to pay obligations and the recipients have not cash the checks. As a result, the bank
is not aware of the checks and has not yet recorded Dorians outgoing checks.)
(5) The bank returned an NSF check from a customer for $560.
(6) The bank statement showed that a $2,000 note was collected and interest on the note was
$60. (In total, $2060 was deposited in Dorian Companys account from the collection of the
note and the related interest.)
Instructions
Prepare a bank reconciliation for Dorian Company at March 31, 2020.
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