Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On March 31, 20X1, Home Decorating Pavilion received a bank statement showing a balance of $9,740. The balance in the firm's checkbook and Cash account

image text in transcribed
image text in transcribed
image text in transcribed
On March 31, 20X1, Home Decorating Pavilion received a bank statement showing a balance of $9,740. The balance in the firm's checkbook and Cash account on the same date was $10,164. The difference between the two balances is caused by the items listed below. a. A $2,865 deposit made on March 30 does not appear on the bank statement. b. Check 358 for $480 issued on March 29 and Check 359 for $1,640 issued on March 30 have not yet been paid by the bank. c. A credit memorandum shows that the bank has collected a $1,200 note receivable and interest of $120 for the firm. d. A service charge of $24 appears on the bank statement. e. A debit memorandum shows an NSF check for $520. (The check was issued by Dane Jaris, a credit customer.) f. The firm's records indicate that Check 341 of March 1 was issued for $700 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 $600. g. The bank made an error by deducting a check for $555 issued by another business from the balance of Home Decorating Pavilion's account. Required: 1. Prepare a bank reconciliation statement for the firm as of March 31,201. 2. Record entries for any items on the bank reconciliation statement that must be journalized. HOME DECORATING PAVILION Bank Reconciliation Statement 1 A credit memorandum shows that the bank has collected a $1,200 note receivable and interest of $120 for the firm. 2 The firm's records indicate that Check 341 of March 1 was issued for $700 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 $600. 3 A debit memorandum shows an NSF check for $520. (The check was issued by Dane Jaris, a credit customer.) 4 A service charge of $24 appears on the bank statement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Internal Auditing

Authors: Manuel E. Peña-Rodríguez

1st Edition

1736742922, 978-1736742921

More Books

Students also viewed these Accounting questions

Question

What is job enlargement ?

Answered: 1 week ago

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago