Reference no: EM132471941

On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,850. The balance in the ?rm'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.

Point a. A $2.9?5 deposit made on March 30 does not appear on the bank statement.

Point 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.

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

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

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

Point f. The ?rm'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 $150.

Point 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:

Question 1. Prepare a bank reconciliation statement for the ?rm as of March 31, 2019.

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