Question

Di Stefano Office Supply Company received a bank statement showing a balance of $67,955 as of March 31, 2019. The firm’s records showed a book balance of $69,481 on March 31. The difference between the two balances was caused by the following items. A debit memorandum for $49, which covers the bank’s collection fee for the note (item 6). A deposit in transit of $3,650. A check for $247 issued by another firm that was mistakenly charged to Di Stefano’s account. A debit memorandum for an NSF check of $6,130 issued by Wozniak Construction Company, a credit customer. Outstanding checks: Check 3782 for $2,150; Check 3840 for $150. A credit memorandum for a $6,250 noninterest-bearing note receivable that the bank collected for the firm. Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement

Answer 1

Bank Reconciliation

Bank		Books
Balance, March 31	67,955	Balance, March 31	69,481
Add:		Add:
Deposit in transit	3,650
Correction of bank error	247	Bank collection of receivables	6,250
Less:		Less:
Outstanding checks		NSF check	- 6,130
Check 3782	- 2,150	Bank collection fee	- 49
Check 3840	- 150
Adjusted bank balance	$69,552	Adjusted book balance	$69,552

Journal

Date	Account title	Debit	Credit
March 31, 2019.	Bank collection fee	49
	Cash		49
March 31, 2019.	Accounts receivables - Wozniak Construction Company	6,130
	Cash		6,130
March 31, 2019.	Cash	6,250
	Note receivables		6,250