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 $67,166. The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,730 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 $590 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 $48 charge for the safety deposit box. Santana has not yet recorded this expense. On March 26, the bank statement lists a $103 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 $44 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 $133 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. 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

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 18E

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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 $67,166. The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,730 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 $590 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 $48 charge for the safety deposit box. Santana has not yet recorded this expense.
On March 26, the bank statement lists a $103 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 $44 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 $133 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.

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.)

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