Question -
On March 31, 2016, Home Decorating Pavilion received a bank statement containing a balance of $9,650. The balance in the firm's checkbook and Cash account on the same date was $10,130. The difference between the two balances is caused by the items listed below.
a. A $2,775 deposit made on March 30 does not appear on the bank statement.
b. Check 358 for $435 issued on March 29 and Check 359 for $1,550 issued on March 30 have not yet been paid by the bank.
c. A credit memorandum shows that the bank has collected a $1,100 note receivable and interest of $110 for the firm.
d. A service charge of $15 appears on the bank statement.
e. A debit memorandum shows an NSF check for $475. (The check was issued by Dane Smithey, a credit customer.)
f. The firm's records indicate that Check 341 of March 1 was issued for $700 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $600.
g. The bank made an error by deducting a check for $510 issued by another business from the balance of Home Decorating Pavilion's account.
Prepare a bank reconciliation statement for the firm as of March 31, 2016.