Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,966. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,385 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. The bank erroneously cleared a $410 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems. On March 25, the bank statement lists a $59 charge for the safety deposit box. Santana has not yet recorded this expense. On March 26, the bank statement lists a $102 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense. On March 31, the bank statement lists $30 interest earned on Business Solutions’s checking account for the month of March. Santana has not yet recorded this revenue. S. Rey notices that the check she issued for $122 on March 31, 2020, has not yet cleared the bank. S. Rey verifies that all deposits made in March do appear on the March bank statement. Required: 1. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2020.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 21E

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Question

Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,966. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,385 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.

The bank erroneously cleared a $410 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems.
On March 25, the bank statement lists a $59 charge for the safety deposit box. Santana has not yet recorded this expense.
On March 26, the bank statement lists a $102 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense.
On March 31, the bank statement lists $30 interest earned on Business Solutions’s checking account for the month of March. Santana has not yet recorded this revenue.
S. Rey notices that the check she issued for $122 on March 31, 2020, has not yet cleared the bank.
S. Rey verifies that all deposits made in March do appear on the March bank statement.

Required:

1. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2020.

BUSINESS SOLUTIONS
Bank Reconciliation
March 31, 2020
Bank statement balance
Book balance
Add:
Add:
Deduct:
Deduct:
Adjusted bank balance
Adjusted book balance
2. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, for any bank charges. Use Interest Revenue, for any interest
earned on the checking account for March. (If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.)
View transaction list
Journal entry worksheet

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