Question

The following information was used to prepare the March 2011, bank reconciliation for Grider Machine Works. Identify the items that require adjustment to the cash balance per books and prepare the appropriate adjusting entries. No accruals had been made for interest income. Bank statement showed Debit Memo for $60 NSF check from Bob Simpson. A deposit by owner to his personal account in the amount of $300 was credited to the company account. (Bank error should be shown on top half of reconciliation.) The bank statement included a debit memorandum for $27 for printing checks for Grider Machine Works. The bank statement contains a credit memorandum for $18 interest on the savings account balance. The daily deposits of March 30 and March 31, for $3,362 and $3,125 respectively, were not listed on the bank statement. Two checks totaling $316, which were outstanding at the end of February, cleared in March. The bank statement included a credit memorandum dated March 28, 2011, for $30 for the monthly interest income on a 6-month, $15,000 certificate of deposit that the company owns. Four checks, #8712, #8716, #8718, #8719, totaling $5,369, did not clear the bank during March. A credit memorandum dated March 29, 2011, indicated the collection of a $4,000 note and $90 of interest. The bank statement included a debit memorandum for $20 for the collection service on the above note and interest.

 

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