Reference no: EM132447619

ACC291 Principles Of Accounting Assignment - University of Phoenix, USA

Question - On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,850. The balance in the firm's checkbook and Cash account on the same date was $10,500. The difference between the two balances is caused by the items listed below.

a. A $2,975 deposit made on March 30 does not appear on the bank statement.

b. Check 358 for $535 issued on March 29 and Check 359 for $1,750 issued on March 30 have not yet been paid by the bank.

c. A credit memorandum shows that the bank has collected a $1,100 note receivable and interest of $110 for the firm.

d. A service charge of $35 appears on the bank statement.

e. A debit memorandum shows an NSF check for $575. (The check was issued by Dane Jaris, a credit customer.)

f. The firm's records indicate that Check 341 of March 1 was issued for $800 to pay the month's rent. However, the canceled check and the listing on the bank statement Show that the actual amount of the check was $750.

g. The bank made an error by deducting a check for $610 issued by another business from the balance of Home Decorating Pavilion's account.

Required -

1. Prepare a bank reconciliation statement for the firm as of March 31, 2019.

2. Record entries for any items on the bank reconciliation statement that must be journalized.