Dillman Food Store Developed the Following Information in Recording Its

question 111

Essay

Dillman Food Store developed the following information in recording its bank statement for the month of March. -------------------------------------------
(1) Checks written in March but still outstanding $6,000.
(2) Checks written in February but still outstanding $2,800.
(3) Deposits of March 30 and 31 not yet recorded by bank $5,200.
(4) NSF check of customer returned by bank $1,200.
(5) Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549.
(6) Bank service charge for March was $50.
(7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March.
(8) The bank collected a note receivable for the company for $5,000 plus $150 interest revenue.
Instructions
Prepare a bank reconciliation at March 31.

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Definitions:

Recessionary Gap

The difference between the actual output of an economy and the output it would produce if it were at full employment, indicating underperformance.

Equilibrium GDP

The level of Gross Domestic Product (GDP) at which aggregate supply equals aggregate demand, indicating a state of economic balance.

National Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and domestic institutions.

Trillion Mark

A reference to a period of hyperinflation in Weimar Germany where the mark, the currency at the time, devalued to the point where trillions were needed for basic transactions.