You Are a Supervisor in the Accounting Department of Stellar

question 109

Essay

You are a supervisor in the accounting department of Stellar Consulting.The person you just hired shows you the bank reconciliation prepared for March 31,as shown below. In comparing the bank reconciliation to the Cash account in the General Ledger,you notice a problem.You investigate further and come up with some additional information as follows:
a.The Cash account in the General Ledger showed the following: Instructions
1.Prepare a corrected bank reconciliation for March 31,2015.
2.Record the journal entries resulting from the corrected bank reconciliation.

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Definitions:

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in rendering services.

Journal Entry

A record in accounting that notes the debit and credit transactions affecting the financial statements of a business.

Significant Influence

A concept in accounting and finance where an investor has the power to participate in, but not control, the financial and operating policy decisions of an investee.

Investment Account

A financial account that holds securities, shares, or other investments made by an individual or entity with the objective of earning returns.