Prepare bank reconciliation and record adjusting entries

Response to the following problem:

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:

a. A deposit of $1,000 made on March 30, 2015 was not yet recorded by the bank on the March statement.

b. A customer's cheque amounting to $700 and deposited on March 15 was returned NSF with the bank statement.

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.

d. $20 for March service charges were recorded on the bank statement but not in the company records.

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.

f. There were $622 of outstanding cheques at March 31.

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.


Prepare a bank reconciliation and record all necessary adjusting entries at March 31, 2015.

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Financial Accounting: Prepare bank reconciliation and record adjusting entries
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