At 31 March 2015, the balance of the Cash account according to the records of Harmony Company was $14,432. The 31 March bank statement showed a balance of $17,596. You are going to prepare the bank reconciliation of Harmony Company at 31 March 2015, using the following supplementary information: (1) Service charge by bank, $100. (2) The bank has collected a total of $10,100 and directly credited to Harmony, which represents the principal and interest owed by Peace Company. Interest amounted to $200. (3) A check for $180 drawn by a customer, Charlotte Lava, but deducted from Harmony’s account by the bank and returned with the notation “NSF.” (4) Harmony’s records showed that it has made a total deposit of $32,088 during March 2015, but according to the bank statement it only showed deposits of $18,544. No deposit-in-transit is carried forwarded from February 2015. (5) Outstanding checks: no. 18120, $280; no. 18121, $1,864; no. 18127, $614; no. 18134, $4,400. (6) Harmony’s check no. 18114, issued in payment of $1,960 worth of supplies, correctly written in the amount of $1,960 but erroneously recorded in Harmony’s accounting records as $1,690. Required (a) Prepare the bank reconciliation for Harmony Company as of 31 March 2015.
At 31 March 2015, the balance of the Cash account according to the records of
Harmony Company was $14,432. The 31 March bank statement showed a balance of
$17,596. You are going to prepare the bank reconciliation of Harmony Company at
31 March 2015, using the following supplementary information:
(1) Service charge by bank, $100.
(2) The bank has collected a total of $10,100 and directly credited to Harmony, which
represents the principal and interest owed by Peace Company. Interest
amounted to $200.
(3) A check for $180 drawn by a customer, Charlotte Lava, but deducted from
Harmony’s account by the bank and returned with the notation “NSF.”
(4) Harmony’s records showed that it has made a total deposit of $32,088 during
March 2015, but according to the bank statement it only showed deposits of
$18,544. No deposit-in-transit is carried forwarded from February 2015.
(5) Outstanding checks: no. 18120, $280; no. 18121, $1,864; no. 18127, $614; no.
18134, $4,400.
(6) Harmony’s check no. 18114, issued in payment of $1,960 worth of supplies,
correctly written in the amount of $1,960 but erroneously recorded in Harmony’s
accounting records as $1,690.
Required
(a) Prepare the bank reconciliation for Harmony Company as of 31 March 2015.
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