Question

betura w 45 10062 Problems (50 Points) please answer in the Blue Book Problem 1 XYZ Company needs to prepare a bank reconciliation for the month ended March 31st. The company's general ledger cash balance as of March 31st was $5,200. The company's bank balance as of March 31st was $5,000. The following additional information regarding XYZ'S cash activity is as follows: • XYZ received $1,000 in checks on March 31st and deposited these checks into the bank on April 1st. Outstanding checks as of March 31st were $750 Bank service charges for the month of March were $50 Check number 125 for rent was entered into the accounting records for 500, but the check was paid by the bank at its correct amount of $400 A. Prepare a bank reconciliation for XYZ Company for the month of March B. Prepare the necessary journal entries to record the correct cash balance on the company's books as of March 31st.

Answer 1

Bank reconciliation statement
Description	Amount
Balance as per Bank	$         5,000
Bank fee and charges	$              50
Cheque not yet deposited in bank	$         1,000
Cheque not yet presented	$          (750)
Wrong entry of rent cheque	$          (100)
total of above	$         5,200
Balance as per Cash account	$         5,200
Variance	$               -
Journal entries to correct cash balance
Bank charges                   Dr	$              50
To Bank account		$         50
(Bank charges for the month accounted)
Bank                                  Dr	$            100
To Rent expense		$       100
(For corrections done to rent account)
Adjusted cash account
Description	Amount
Balance as per Cash account	$         5,200
Adjustements-
Bank charges	$             (50)
Wrong entry for cheque	$            100
Adjusted cash balance	$         5,250