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The Cash general ledger account balance of Gladstone Ltd. was $2,531 at March 31, 2019. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted: a. A deposit of $1,000 made on March 30, 2019 was not yet recorded by the bank on the March statement. b. A customer's check amounting to $700 and deposited on March 15 was returned NSF with the bank statement. c. Check #4302 for office supplies expense, correctly made out for $125 and clearing the bank for this amount, was recorded in the company records as $152. Check deduction error of $27 d. $20 for March service charges were recorded on the bank statement but not in the company records. e. A cancelled check for $250 belonging to Global Corp. but charged by the bank to Gladstone Ltd. was included with the cancelled checks returned by the bank. f. There were $622 of outstanding checks at March 31. g. The bank collected a note receivable for $300 on March 31 including interest of $50. The bank charged Gladstone Ltd. a $10 service charge that also is not included in the company records. Required: Prepare a bank reconciliation and record all necessary adjusting entries at March 31, 2019.

The Cash general ledger account balance of Gladstone Ltd. was $2,531 at March 31, 2019. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted: a. A deposit of $1,000 made on March 30, 2019 was not yet recorded by the bank on the March statement. b. A customer's check amounting to $700 and deposited on March 15 was returned NSF with the bank statement. c. Check #4302 for office supplies expense, correctly made out for $125 and clearing the bank for this amount, was recorded in the company records as $152. Check deduction error of $27 d. $20 for March service charges were recorded on the bank statement but not in the company records. e. A cancelled check for $250 belonging to Global Corp. but charged by the bank to Gladstone Ltd. was included with the cancelled checks returned by the bank. f. There were $622 of outstanding checks at March 31. g. The bank collected a note receivable for $300 on March 31 including interest of $50. The bank charged Gladstone Ltd. a $10 service charge that also is not included in the company records. Required: Prepare a bank reconciliation and record all necessary adjusting entries at March 31, 2019.

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 7.18EX
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Please balance, if unable to balance please explain

CP 7-3 The Cash general ledger account balance of Gladstone Ltd. was $2,531 at March 31, 2019. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted: a. A deposit of $1,000 made on March 30, 2019 was not yet recorded by the bank on the March statement. b. A customer's check amounting to $700 and deposited on March 15 was returned NSF with the bank statement. c. Check #4302 for office supplies expense, correctly made out for $125 and clearing the bank for this amount, was recorded in the Check deduction error of $27 company records as $152. d. $20 for March service charges were recorded on the bank statement but not in the company records. e. A cancelled check for $250 belonging to Global Corp. but charged by the bank to Gladstone Ltd. was included with the cancelled checks returned by the bank. f. There were $622 of outstanding checks at March 31. g. The bank collected a note receivable for $300 on March 31 including interest of $50. The bank charged Gladstone Ltd. a $10 service charge that also is not included in the company records. Required: Prepare a bank reconciliation and record all necessary adjusting entries at March 31, 2019.
Transcribed Image Text:CP 7-3 The Cash general ledger account balance of Gladstone Ltd. was $2,531 at March 31, 2019. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted: a. A deposit of $1,000 made on March 30, 2019 was not yet recorded by the bank on the March statement. b. A customer's check amounting to $700 and deposited on March 15 was returned NSF with the bank statement. c. Check #4302 for office supplies expense, correctly made out for $125 and clearing the bank for this amount, was recorded in the Check deduction error of $27 company records as $152. d. $20 for March service charges were recorded on the bank statement but not in the company records. e. A cancelled check for $250 belonging to Global Corp. but charged by the bank to Gladstone Ltd. was included with the cancelled checks returned by the bank. f. There were $622 of outstanding checks at March 31. g. The bank collected a note receivable for $300 on March 31 including interest of $50. The bank charged Gladstone Ltd. a $10 service charge that also is not included in the company records. Required: Prepare a bank reconciliation and record all necessary adjusting entries at March 31, 2019.
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The difference between the cash book balance and bank book balance due to some extra transactions in the bank account like cheque issued but not collected and cheque received but dishonored, bank charges, interest on the deposit amount, and so on.

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