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. 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.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 10PB: Prepare journal entries to record the following transactions. Create a T-account for Accounts...

See similar textbooks

Related questions

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.

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.)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions