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On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,810. The balance in the firm's checkbook and Cash account
On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,810. The balance in the firm's checkbook and Cash account on the same date was $10,276. The difference between the two balances is caused by the items listed below.
- A $2,935 deposit made on March 30 does not appear on the bank statement.
- Check 358 for $515 issued on March 29 and Check 359 for $1,710 issued on March 30 have not yet been paid by the bank.
- A credit memorandum shows that the bank has collected a $1,200 note receivable and interest of $120 for the firm.
- A service charge of $31 appears on the bank statement.
- A debit memorandum shows an NSF check for $555. (The check was issued by Dane Jaris, a credit customer.)
- The firm's records indicate that Check 341 of March 1 was issued for $900 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $800.
- The bank made an error by deducting a check for $590 issued by another business from the balance of Home Decorating Pavilion's account.
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