Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Adjusted balance: S21,470 The cash account for Recreational Systems at March 31, 20Y6, indicated a balance of $12,435. The bank statement indicated a balance
Adjusted balance: S21,470 The cash account for Recreational Systems at March 31, 20Y6, indicated a balance of $12,435. The bank statement indicated a balance of $27,150 on March 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: a. Checks outstanding totaled $9,675. b. A deposit of S4,175, representing receipts of March 31, had been made too late to appear on the bank statement. c. The bank had collected S8,480 on a note left for collection. The face of the note was $8,000. d. A check for $180 returned with the statement had been incorrectly recorded by Recreational Systems as $810. The check was for the payment of an obligation to Jones Co. for the purchase of office supplies on account. e. A check drawn for $750 had been incorrectly charged by the bank as $570. f. Bank service charges for March amounted to $75. Instructions 1. Prepare a bank reconciliation. 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started