The Following Information Was Used to Prepare the March 2016

question 130

Essay

The following information was used to prepare the March 2016 bank reconciliation for Sam's Store. Identify the items that require adjustment to the cash balance per books and prepare the appropriate adjusting entries.
1. Included with the bank statement materials was a check from Stan Kenton for $50 stamped "NSF."
2. A personal deposit by Sam Snead to his personal account in the amount of $380 for dividends on his General Motors common stock was credited to the company account.
3. The bank statement included a debit memorandum for $31.00 for two books of blank checks for Sam's Store.
4. The bank statement contains a credit memorandum for $27.45 interest on the average checking account balance.
5. The daily deposits of March 30 and March 31 for $3632 and $3215 respectively were not included in the bank statement postings.
6. Two checks totaling $361.86 which were outstanding at the end of February cleared in March and were returned with the March statement.
7. The bank statement included a credit memorandum dated March 28 2016 for $54.00 for the monthly interest on a 6-month $18000 certificate of deposit that the company owns.
8. Four checks #8722 #8726 #8728 #8729 totaling $5936.65 did not clear the bank during March.
9. On March 24 2016 Sam's Store delivered to the bank for collection a $5400 3-month note from Bill Becker. A credit memorandum dated March 29 2016 indicated the collection of the note and $120.00 of interest.
10. The bank statement included a debit memorandum for $25.00 for the collection service on the above note and interest.

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Definitions:

Emotional State

A complex experience of consciousness, bodily sensation, and behavior that reflects the personal significance of a thing, event, or state of affairs.

Stress

Emotional states that occur in response to demands, which may come from internal or external sources.

External Sources

Resources or information that originate outside an organization or individual, utilized for research, knowledge enhancement, or solving specific issues.

Precious Resource

A highly valuable and often limited asset or commodity that is important for the economy or environment, such as gold, water, or clean air.