Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 7-9A Preparing a bank reconciliation and recording adjustments Lo6 Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31:

image text in transcribed
image text in transcribed
image text in transcribed
Problem 7-9A Preparing a bank reconciliation and recording adjustments Lo6 Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: $31,225 Stewart Recording Studio Bank Reconciliation March 31, 2020 Bank statement balance $22,300 Rook balance Add: Deposit of March 31 in transit 10,090 $32,390 Deducti Outstanding cheques! 214 $846 222 319 1,165 Adjusted bank balance $31,225 Adjusted book balance $31,225 Cash Explanation Acet. No. 101 Balance PR Debit Credit Date 2020 March 31 April 30 30 Balance CR17 72,084 CD13 31, 225 103,309 10,481 92,828 A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below: Deposits Made April 7 13 18 23 27 30 Total April Cash Receipts $ 696 4,640 5,952 14,022 1,766 45,000 $72,084 Deposits Made April 7 13 18 23 27 30 Total April Cash Receipts $ 696 4,640 5,952 14,022 1,766 45,008 $72,084 Cheques Written No. 23 24 25 26 27 28 29 30 31 32 Total April Cash Disbursements $ 5,246 3,178 948 316 4,312 4,900 20,006 41,880 420 11,622 $92,828 The following bank statement is available for April: Bank Statement To: Stewart Recording Studio Cheques/Charges Deposits/Credits 04/03 04/07 04/13 04/18 04/23 #31 #28 #26 NSP +24 420 9,400 316 14,474 3,178 04/03 04/07 04/13 04/18 04/23 April 30, 2020 Bank of Canada Balance 22,300 31,970 23,266 27,590 19,068 29,912 10,090 696 4,640 5,952 14,022 31 04/03 28 04/07 626 04/13 NS 04/18 224 04/23 423 04/27 229 04/30 PNT 04/30 INT 04/30 SC 04/30 NST - Not sufficient Punds 420 9,400 316 14,474 3,178 5,246 20,006 16,204 546 179 SC - Service Charge 04/03 04/07 04/13 04/18 04/23 04/27 04/30 10,090 696 4,640 5,952 14,022 1,266 122,000 31.970 23,266 27,590 19.068 29,912 26.432 128,426 112,222 111,676 111,497 INT - Interest on Bank TOAR PHT - Payment of Principal on the loan . In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the Cash Disbursements Journal correctly as $4,900. The NSF cheque for $14,474 was that of customer Oprah Winney, deposited in March. . On the bank statement, the payment for $16,204 is regarding a note payable. . There is also a deposit of $122,000 dated April 30. It is an investment made by the owner into the business (the bank transferred the funds electronically from the owner's personal acepunt to his business account, which is why it was not recorded in the Cash Receipts Journal). Required: a. Prepare a bank reconciliation for Stewart Recording Studio at April 30. STEWART RECORDING STUDIO Bank Reconciliation April 30, 2020 Company's Books Bank Statement Book balance Add: Bank statement balance Add

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

Introduction To Managerial Accounting

Authors: Peter C. Brewer, Ray H. Garrison, Eric W. Noreen

2nd Edition

0072922990, 9780072922998

More Books

Students also viewed these Accounting questions

Question

Detailed note on the contributions of F.W.Taylor

Answered: 1 week ago