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Preparing a Bank Reconciliation and Recording Adjusting Entries The following information is available to United Inc. in preparation of its March bank reconciliation. 1. Company
Preparing a Bank Reconciliation and Recording Adjusting Entries The following information is available to United Inc. in preparation of its March bank reconciliation. 1. Company Cash Account March 1 balance 28,350 Deposits 2. Bank statement for month, dated March 31. Balance, March 1 Deposits Checks cleared 51,468 53,000 Checks NSF check (Customer Zinny) Note collected for depositor (including interest, $80) Interest on bank balance Bank service charge Balance, March 31 3. Additional information Required $30,800 51,198 (54,118) (100) 1,680 36 (14) $29,482 a. The company overstated one of its deposits by $20; the bank recorded it correctly. Record the correction using the Cash Over and Short account. b. The bank cleared a $178 check as $187; the error has not yet been corrected by the bank. c. 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 $ 0 Checks outstanding $ 0 b. Prepare a bank reconciliation for March. Note: Use negatives signs with your answers in the schedules that follow to indicate a subtraction. Note: If an item isn't required for the reconciliation, select "N/A" as the description and leave the answer blank (zero).
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