March 31 2019Balance on bank statementAdditionsDeductionsTot

March 31, 2019Balance on bank statementAdditions:Deductions:Total deductionsAdjusted bank balanceBalance in booksAdditions:Deductions:Adjusted book balance

Di Stefano Office Supply Company received a bank statement showing a balance of $70,005 as of March 31, 2019. The firm’s records showed a book balance of $71,487 on March 31. The difference between the two balances was caused by the following items.

A debit memorandum for $40, which covers the bank’s collection fee for the note (item 6).

A deposit in transit of $4,700.

A check for $348 issued by another firm that was mistakenly charged to Di Stefano’s account.

A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.

Outstanding checks: Check 3782 for $2,200; Check 3840 for $251.

A credit memorandum for a $7,300 noninterest-bearing note receivable that the bank collected for the firm.

Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.

Solution

ans 1 Bank Reconciliation as on March 31 Balance as per bank $70,005 Additions:   Deposit in Transit $4,700 Error made by bank 348 5048 Deductions $75,053 Outstanding ckecks Check 3782 2200 Check 3840 251 2451 Adjusted Bank Balance $72,602.00 Company\'s Book Book balance 71487 Add Proceeds of note receivable 7300 7300 78787 Deductions Miscelleneous expenses 40 NSF 6145 6185 Adjusted Book balance 72602 ans 2 Trans Accounts Tilte Dr Cr 31-Mar a Cash $7,300 Notes Receivable $7,300 b Accounts receivable $6,145 Cash $6,145 c Miscelleneous expenses 40 Cash 40