Question
Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: Stewart Recording Studio Bank Reconciliation March 31, 2020 Bank statement
Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: Stewart Recording Studio Bank Reconciliation March 31, 2020 Bank statement balance $ 21,100 Book balance $ 29,545 Add: Deposit of March 31 in transit 9,547 $ 30,647 Deduct: Outstanding cheques: #14 $ 801 #22 301 1,102 Adjusted bank balance $ 29,545 Adjusted book balance $ 29,545 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 March 31 Balance 29,545 April 30 CR17 70,384 99,929 30 CD13 88,394 11,535 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 $ 680 13 4,530 18 5,813 23 13,694 27 1,724 30 43,943 Total April Cash Receipts $ 70,384 Cheques Written No. 23 $ 5,115 24 3,103 25 929 26 300 27 4,091 28 4,900 29 18,971 30 39,460 31 402 32 11,123 Total April Cash Disbursements $ 88,394 The following bank statement is available for April: Bank Statement To: Stewart Recording Studio April 30, 2020 Bank of Canada Cheques/Charges Deposits/Credits Balance 21,100 #31 04/03 402 04/03 9,547 30,245 #28 04/07 9,400 04/07 680 21,525 #26 04/13 300 04/13 4,530 25,755 NSF 04/18 13,736 04/18 5,813 17,832 #24 04/23 3,103 04/23 13,694 28,423 #23 04/27 5,115 04/27 1,724 25,032 #29 04/30 18,971 04/30 110,000 116,061 PMT 04/30 15,362 100,699 INT 04/30 368 100,331 SC 04/30 177 100,154 NSF = Not Sufficient Funds SC = Service Charge PMT = Payment of Principal on the loan INT = Interest on Bank 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 $13,736 was that of customer Oprah Winney, deposited in March. On the bank statement, the payment for $15,362 is regarding a note payable. There is also a deposit of $110,000 dated April 30. It is an investment made by the owner into the business (the bank transferred the funds electronically from the owners personal account 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.
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