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Problem 1 (25 points) At March 31, the balance of the Cash account according to the records of Lincoln Company was $12,089. The March 31
Problem 1 (25 points) At March 31, the balance of the Cash account according to the records of Lincoln Company was $12,089. The March 31 bank statement showed a balance of $13,675. You are to prepare the bank reconciliation of Lincoln Company at March 31, using the following supplementary information: (a.) Deposit in transit at March 31, $6,552. (b.) Outstanding checks: no. 110, $498; no. 111, $1,003; no. 122, $541; (c.) Service charge by bank, $20. (d.) A note receivable for $6,339 left by Lincoln Company with bank for collection that had been collected and credited to company's account. No interest involved. (e.) A check for $123 drawn by a customer, Marc Houdini, but deducted from Lincoln's account by the bank and returned with the notation "NSF." (f.) Lincoln's check no. 320, issued in payment of $980 worth of office equipment, correctly written in the amount of $980 but erroneously recorded in Lincoln's accounting records as $880. hown below is partially completed bank reconciliation for Lincoln Company at March 31, 2018 as well as additional data necessary to answer the questions that follow. (15 points) 1. S Lincoln Company Bank Reconciliation March 31, 2018 Balance per bank statement, March 31.. Add: Less: Adjusted balance $13,675 www.euruni.edu 12,089 Balance per depositor's records, March 31 Add Less: Adjusted balance (as above) 2. Prepare the necessary journal entries (in general journal form) to adjust the accounting records of Lincoln Company as of March 31. (Explanations may be omitted; one compound journal entry is acceptable). (5 points) 3. Determine the amount of cash and cash equivalents that should be reported in the company's balance sheet dated March 31. (5 points)
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