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On March 31, Monty Corporation showed a cash balance on their books of $13,800. The Ban showed a month end balance of $16,943. On reviewing
On March 31, Monty Corporation showed a cash balance on their books of $13,800. The Ban showed a month end balance of $16,943. On reviewing the bank statement, the following items were discovered: 1 A deposit made on March 29 for $4,350 did not appear on the bank statement. 2 Cheques written in the month of March but that did not appear on the bank statement were as follows: Cheque # 6341 $4,510 Cheque # 6342 305 Cheque # 6346 42 Cheque #6347 1,055 Cheque #6348 855 3. 4. 5. 6. The bank credited Monty's account for $510 on March 19. This deposit did not belong to Monty, but belonged to another company and was posted in error. The bank statement showed receipt of a wire transfer of $1.200 in payment of a note receivable, as well as $108 interest. According to the bank statement, $42 was deducted from Monty's account for service charges. The bank cleared cheque # 6281 for $930; however, the cheque was recorded in Monty's records at $380. Research showed 6. The bank cleared cheque # 6281 for $930; however, the cheque was recorded in Monty's records at $380. Research showed the bank was correct, and the cheque was recorded incorrectly in Monty's books. The cheque was written in payment of rent. 7 A cheque for $300 from one of Monty's customers was rejected by the bank due to insufficient funds (NSF). (a) Prepare a bank reconciliation to the correct cash balance at March 31. (List items that increase balance as per bank and books first.) Balance pe bank statement, March 31 Add Outstanding cheques Monty Corporation Bank Reconciliation As At March 31 Less v $ $
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