Question

Submission 2 - due Saturday June 23 before 5pm - You must submit your completed Bank Reconciliation, the journal entries to bring the cash balance to the correct balance, and the Bank Reconciliation formulas tab completed. Your file must be named correctly – Please Show equations

The following information should be used to prepare a bank reconciliation for SWARS Sales and Consulting as of March 31. Prepare the reconciliation on the Bank Reconciliation tab.
	On March 31, 2018, SWARS Sales and Consulting Co. had a cash balance in the ledger of $253,560. The March statement from Dakota State Bank showed a balance of $254,911 on March 31, 2018. The following facts regarding banking and cash activities are available.
	The bank service charge for March was $95.
	The bank collected $13,400, that was owed to SWARS Sales and Consulting Co by a customer, through electronic funds transfer.
	The March 31 receipts of $24,500 were not included in the bank deposits for March. These receipts were deposited by the company in a night deposit vault on March 31.
	Company check No. 2480 issued to Tatooine Co, a creditor, for $354 that cleared the bank in March was incorrectly entered in the cash payments journal on March 10 for $300.
	Checks outstanding on March 31 totaled $16,500.
	On March 31, the bank statement showed an NSF charge of $1,250 for a check received by the company from J T Hutt, a customer, on account.
	The bank statement shows a check for $2,650 was charged to SWARS account. The check was written by BB8 Company not SWARS Sales and Consulting .
	Prepare the bank reconciliation as of March 31.
	Prepare the necessary entries at March31 to update the cash account. Place the Journal entries on the Journal entries Tab

March Journal Entries
1-Mar	Accounts Receivable	3450
	Sales Revenue		3,450
	Cost of Goods Sold	1450
	Inventory		1,450
3-Mar	Inventory	2800
	Accounts Payable		2,800
15-Mar	Accounts Receivable	3750
	Sales Revenue		3,750
	Cost of Goods Sold	1950
	Inventory		1,950
20-Mar	Inventory	2000
	Accounts Payable		2,000
24-Mar	Accounts Receivable	4900
	Sales Revenue		4,900
	Cost of Goods Sold	2600
	Inventory		2,600
Bank Reconciliation Journal Entries

Answer 1

Bank Reconciliation Statement:
Balance as per Bank statement				254911
Add:
Deposit in transit			24500
Error in recording check			2650	27150
Less:
Outstanding checks				-16500
Adjusted Balance in Bank Statement				265561
Balance as per books				253560
Add:
Direct collection from customer				13400
Less:
service charges			95
Check issued wrongly entered			54
NSF check			1250	-1399
Adjusted balance in books				265561
Journal entries:
Accounts title and explanation				Debit $	Credit $
Cash Account Dr.				13400
Accounts receivable					13400
Misc expense Account Dr.				95
Cash account					95
Accounts payable-Tatooine Dr.				54
Cash account					54
Accounts receivabale-Hutt Dr.				1250
Cash account					1250