The Cash general ledger account balance of Gladstone Ltd. was $2,531 at March 31, 2015. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted:
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a. |
A deposit of $1,000 made on March 30, 2015 was not yet recorded by the bank on the March statement. |
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b. |
A customer’s cheque amounting to $700 and deposited on March 15 was returned NSF with the bank statement. |
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c. |
Cheque #4302 for office supplies expense, correctly made out for $125 and clearing the bank for this amount, was recorded in the company records as $152. |
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d. |
$20 for March service charges were recorded on the bank statement but not in the company records. |
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e. |
A cancelled cheque for $250 belonging to Global Corp. but charged by the bank to Gladstone Ltd. was included with the cancelled cheques returned by the bank. |
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f. |
There were $622 of outstanding cheques at March 31. |
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g. |
The bank collected a note receivable for $300 on March 31 including interest of $50. The bank charged Gladstone Ltd. a $10 service charge that also is not included in the company records. |
Required: Prepare a bank reconciliation and record all necessary adjusting entries at March 31, 2015.
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