Chapter 6: Serial Problem - Edubirdie

University:
Grand Rapids Community College
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

196

Pages:

2
Author:

stud_ice13

1. Bank Reconciliation for Business Solutions as of March 31, 2022 Bank Reconciliation Bank Book $67,566 Bank balance as of March 31, 2022 Add: Bank error (wrong $500 check cleared) $500 Subtract: Outstanding check (No. 128) ($128) Adjusted Bank Balance $67,938 Book balance as of March 31, 2022 Subtract: Safety deposit box fee Subtract: Charge for printed checks Add: Interest earned Adjusted Book Balance $68,057 ($50) ($102) $33 $67,938 2. Journal Entries for Bank Reconciliation Adjustments 1. Record the safety deposit box fee: plaintext Debit: Miscellaneous Expenses (No. 677) Credit: Cash $50 $50 2. Record the charge for printed checks: plaintext Debit: Miscellaneous Expenses (No. 677) Credit: Cash $102 $102 3. Record the interest earned: plaintext Debit: Cash Credit: Interest Revenue (No. 404) $33 $33 Explanation: • The bank balance of $67,566 is adjusted for the erroneous $500 check cleared by the bank (which was not issued by Business Solutions) and the outstanding check for $128, resulting in an adjusted bank balance of $67,938. • • The book balance of $68,057 is adjusted for the unrecorded bank fees (safety deposit box and printed checks) and the interest earned, resulting in an adjusted book balance of $67,938. Both balances match after adjustments, ensuring proper reconciliation.

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