Reference no: EM132472349
Preparing a bank reconciliation and recording adjustments
Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31:
|
Bank statement balance Add:
Deposit of March 31 in transit
|
521,500 Book balance $30,105
|
|
9,727
|
|
|
|
531,227
|
|
|
Point 1: In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the Cash Disbursements Journal correctly as $4,900.
Point 2: The NSF cheque for $13,920 was that of customer Oprah Winney, deposited in March.
Point 3: On the bank statement, the payment for $15,570 is regarding a note payable.
Point 4: There is also a deposit of $114,000 dated April 30. It is an investment made by the owner into the business (the bank transferred the funds electronically from the owner's personal account to his business account, which is why it was not recorded in the Cash Receipts Journal).
Required:
Question a. Prepare the bank reconciliation for Stewart Recording Studio at April 30
Question b. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.
Attachment:- bank reconilation.rar