Use the following data to answer the next 5 questions.
A partially completed bank reconciliation for Dave Company at March 31, as well as additional data necessary to answer the questions, which follow.
DAVE COMPANY
Bank Reconciliation
March 31, 2008
Balance per books $10,000
Add: (1)
Deduct: (2)
Adjusted cash balance $
Balance per bank statement $6,970
Add: (3)
Deduct: (4)
Adjusted cash balance $
Additional information:
a. An NSF check of Martin Barry, one of Dave’s customers, was returned by the bank; amount was $1,000.
b. Bank service charge for March, 2008, $30.
c. Check no. 9 (for supplies) was written for $500 but erroneously recorded in Dave’ records as $400.
d. Deposits in transit at March 31, 2008, totaled $7,000.
e. Interest earned on the account, $100.
f. Note collected by the bank and credited to Dave’s account, $2,000.
g. Outstanding checks at March 31, 2008, totaled $3,000.
1. In Dave’s completed bank reconciliation at March 31, 2008, what dollar amount should be added to the balance per Dave’s records [indicated by (1) above]?
2. In Dave’s completed bank reconciliation at March 31, 2008, what dollar amount should be deducted from the balance per Dave’s records [indicated by (2) above]?
3. In Dave’ completed bank reconciliation at March 31, 2008, what dollar amount should be added to the balance per bank statement [indicated by (3) above]?
4. In Dave’s completed bank reconciliation at March 31, 2008, what dollar amount should be deducted from the balance per bank statement [indicated by (4) above]?
5. In Dave’s completed bank reconciliation at March 31, 2008, the adjusted cash balance would be: