Use the Information Below for Jamie Horiwitz Co

question 118

Essay

Use the information below for Jamie Horiwitz Co. for March 31, to prepare a bank reconciliation to determine the balance in the Cash account as of March 31, before any reconciling items.
• Adjusted bank balance as of March 31 was $6,365.
• Outstanding checks totaled $850.
• Bud Harper's check for $260 was returned for NSF.
• March's service charge was $25.
• Bank collected $2,550 a note receivable for the company, which included interest of $50.
• A new bookkeeper had problems posting checks:
# 930 for Rent Expense written for $900, recorded as $90
#1207 for Office Equipment written for $8,450, recorded as $4,850.
• A deposit was shown on the bank statement as $965, when the deposit ticket was correctly totaled to be $695.
• Deposits made at month-end totaled $4,516; these were not shown on bank statement.

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Definitions:

Paychecks

Documents issued to employees to pay for their services, representing the net amount after deductions like taxes and retirement contributions.

Notes Payable

Financial obligations represented by written promises to pay specified amounts of money at future dates.

Accounts Payable

Liabilities representing amounts owed by a company to suppliers for goods and services purchased on credit.

Journal Entry

A record in the accounting journals that documents a financial transaction.