The bank portion of last month’s bank reconciliation for Yap Ltd. at February 28 was as follows
The adjusted cash balance per bank agreed with the cash balance per books at February 28. The March bank statement showed the following:
Yap’s cash receipts and payments for the month of March showed the following:
1. The company made an error in recording the March 4 deposit. The error related to a cash sale.
2. The EFT loan payment should have been recorded by the company on March 15, but this entry was missed. The payment included $62 of interest and a $1,000 payment on the loan principal.
3. The bank made an error processing cheque # 3473.
4. The EFT collections were not previously recorded.
Instructions
(a) Calculate the unadjusted cash balance per books at March 31, prior to reconciliation.
(b) What is the amount of the deposits in transit at March 31?
(c) What is the amount of the outstanding cheques at March 31?
(d) Prepare the bank reconciliation at March 31.
(e) Prepare any adjusting journal entries required from there conciliation
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