Question

Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,566. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,057 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.
a. The bank erroneously cleared a $500 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems.
b. On March 25, the bank statement lists a $50 charge for the safety deposit box. Santana has not yet recorded this expense.
c. On March 26, the bank statement lists a $102 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense.
d. On March 31, the bank statement lists $33 interest earned on Business Solutions checking account for the month of March. Santana has not yet recorded this revenue.
e. S. Rey notices that the check she issued for $128 on March 31, 2020, has not yet cleared the bank.
f. S. Rey verifies that all deposits made in March do appear on the March bank statement.

Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2020.

Answer 1

Answer:

Bank Reconciliation Statement

Balance at bank as per Cash Book (Up to date) $67,438

Add Unpresented Cheques                                       $128

Less Lodgements not yet credited                                 0

Balance as per Bank Statement                          $67,566

Explanation:

Step 1 Bring the Cash Book Bank Balance Up to Date as follows :

Debit :

Balance as at March 31                       $68,057

Interest Earned                                           $33

Totals                                                   $68,090

Credit:

Bank Charge- Safety deposit box             $50

Cleared Check                                         $500

Bank Charges - Printed Checks              $102

Bank Balance (Updated)                     $67,438

Totals                                                   $68,090

Step 2 Prepare a Bank Reconciliation Statement

Bank Reconciliation Statement

Balance at bank as per Cash Book (Up to date) $67,438

Add Unpresented Cheques                                       $128

Less Lodgements not yet credited                                 0

Balance as per Bank Statement                          $67,566