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I. Bank reconciliation (8 Points) Donna Tax services Company's bank statement for the month of March showed a balance per bank of $7,175. The company's
I. Bank reconciliation (8 Points) Donna Tax services Company's bank statement for the month of March showed a balance per bank of $7,175. The company's Cash account in the general ledger had a balance of $5,573 at March 31. Other information is as follows: (1) Cash receipts for March 31 recorded on the company's books were $5,850 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $25 for bank service charges. (3) The total amount of checks stll outstanding at September 30 amounted to $4,800. Check No (5) (6) 148 was correctly written and paid by the bank for $408. The cash payment journal reflects an ntry for Check No. 148 as a debit to Accounts Payable and a credit to Cash in Bank for $480. The bank returned an NSF check from a customer for $340 480-1408-42 The bank included a credit memorandum for $2,670 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,600 and interest was $70. Interest has not been accrued (7) The bank statement included a debit memorandum for $25.00 for the collection service on the above note and interest (8) A personal deposit by Donna to her personal account in the amount of $300 for dividends on her General Electric common stock was credited to the company account (9/Two checks totaling $316 which were outstanding at the end of February, cleared in March and were returned with the March statement. Instructions (a) Prepare a bank reconciliation for Donna Tax Services Company at March 31. (b) Prepare any adjusting entries necessary as a result of the bank reconciliation
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