Preparing a Bank Reconciliation and Recording Adjusting Entries

Preparing a Bank Reconciliation and Recording Adjusting Entries The following information is available to United Inc. in preparation of its March bank reconciliation. Company Cash Accounts Bal, March 1 28,350 Deposits 51,468 53,000 Checks Bank statement for month, dated March 31. $30,800 51,198 Balance, March 1 Deposits Checks cleared NSF check (Customer Zinny) Note collected for depositor (including interest, $80) Interest on bank balance Bank service charge Balance, March 31 (54,118) (100) 1,680 36 (14) $29,482 Additional information The company overstated one of its deposits by $20; the bank recorded it correctly. Record the correction using the Cash Over and Short account. The bank cleared a $178 check as $187; the error has not yet been corrected by the bank. End of February: deposits in transit, $1,550; checks outstanding, $4,000. a. Using this information, compute the March 31 (1) deposits in transit and (2) checks outstanding. Deposits in transit $ Checks outstanding $ b. Prepare a bank reconciliation for March. Note: Do not use negative signs with your answers. Note: If an item isn't required for the reconciliation, select "N/A" as the description and leave the answer blank (zero). Bank Ending balance, March 31, 2020 $ Add: Deposits in transit Less: Adjusted balance per bank, March 31, 2020 $ Book Ending balance, March 31, 2020 Add: $ Interest revenue Less: NSF check 14 Adjusted balance per book, March 31, 2020 $ C. Prepare all journal entries that should be made based on the bank reconciliation in part b. Note: If an item isn't required for the reconciliation, select "N/A" as the description and leave the answer blank (zero). Note: List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name. Date Account Name Dr. Cr. Mar. 31, 2020 To record collection of note and interest. Mar. 31, 2020 To record deposits in transit. Mar. 31, 2020 To record outstanding checks. Mar. 31, 2020 To record service charge. Mar. 31, 2020 To record NSF check. Mar. 31, 2020 To record interest. Mar. 31, 2020 . To record error