The Following Information Was Used to Prepare the March 2010

question 160

Essay

The following information was used to prepare the March 2010, bank reconciliation for Grider Machine Works. 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 Bob Simpson for $40 stamped "NSF."
2. A personal deposit by Jim Grider to his personal account in the amount of $300 for dividends on his General Electric common stock was credited to the company account.
3. The bank statement included a debit memorandum for $22.00 for two books of blank checks for Grider Machine Works.
4. The bank statement contains a credit memorandum for $24.75 interest on the average checking account balance.
5. The daily deposits of March 30 and March 31, for $3,362 and $3,125 respectively, were not included in the bank statement postings.
6. Two checks totaling $316.86, 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, 2008, for $45.00 for the monthly interest on a 6-month, $15,000 certificate of deposit that the company owns.
8. Four checks, #8712, #8716, #8718, #8719, totaling $5,369.65, did not clear the bank during March.
9. On March 24, 2008, Grider Machine Works delivered to the bank for collection a $4,500,
3-month note from Don Decker. A credit memorandum dated March 29, 2008, indicated the collection of the note and $90.00 of interest.
10. The bank statement included a debit memorandum for $25.00 for the collection service on the above note and interest.

---

Definitions:

Personality Dimensions

Broad categories used to describe and categorize aspects of human personality, such as introversion/extraversion or emotional stability.

Conscientious

A personality trait characterized by being diligent, careful, and thorough, often displaying a strong sense of duty and responsibility.

Motivation

The psychological forces that determine the direction of a person's behavior in an organization, a person's level of effort, and a person's level of persistence.

Professional Life

Aspects of a person's life pertaining to their career or occupation, focusing on work-related achievements and activities.