The following Bank information is available for Cooter\'s Garage for March, 2002
ID: 2422434 • Letter: T
Question
The following Bank information is available for Cooter's Garage for March, 2002 BANK STATEMENT HAZARD COUNTY STATE BANK 215 Main Street Hazard, GA 30321 Cooter's Garage Account Number 629 Main Street 62-00062 Hazard, GA 30321 March 31, 2002 Beginning Balance 3/1/2002 $ 15,000.00 Total Deposits and Other Credits 7,050.00 Total Checks and Other Debits 6,005.00 Ending Balance 3/31/2002 $ 16,045.00 Checks and Debits Deposits and Credits Date Check No. Amount of Check Date 03/01/02 1462 $ 1,163.00 3/1/2002 $ 1,000.00 03/05/02 1463 62.00 3/2/2002 1,340.00 03/06/02 1464 1,235.00 3/6/2002 210.00 03/09/02 1465 750.00 3/12/2002 1,940.00 03/10/02 1466 1,111.00 3/17/2002 855.00 03/14/02 1467 964.00 3/22/2002 1,480.00 03/19/02 Debit Memo 20.00 Credit Memo 225.00 03/28/02 1468 700.00 The following is a list of checks and deposits recorded on the books of Cooter's Garage for March, 2002 Date Check Number Amount of Check Date Amount of Deposit 3/1/2002 1463 $ 62.00 3/1/2002 $ 1,340.00 3/5/2002 1464 1,235.00 3/5/2002 210.00 3/6/2002 1465 750.00 3/9/2002 1466 1,111.00 3/10/2002 1,940.00 3/10/2002 1467 964.00 3/14/2002 1468 70.00 3/16/2002 855.00 3/19/2002 1469 1,500.00 3/19/2002 1,480.00 3/28/2002 1470 102.00 3/29/2002 1,500.00 Other Information 1 Check no. 1462 was outstanding from February. (Hint: Not Applicable to current month.) 2 A credit memo for collection of accounts receivable was included in the bank statement. 3 All checks were paid by the bank at the correct amount. 4 The bank statement included a debit memo for service charges. 5 The February 28 bank reconciliation showed a deposit in transit of $1,000. 6 Check no. 1468 was for the purchase of equipment. 7 The unadjusted Cash account balance at March 31 was $16,368. Required a. Prepare the bank reconciliation for Cooters Garage at the end of March. b. Record in general journal form any necessary entries to the Cash account to adjust it to the true cash balance. COOTER'S GARAGE T Accounts Cash COOTER'S BANK RECONCILIATION Ending Bank Balance Add: Less: True Cash Balance - Accounts Receivable Book Balance Add: Less: Bank Charges True Cash Balance - Equipment Expense Horizontal Model Cash Acct Rec Bank Chg Equip Exp The following Bank information is available for Cooter's Garage for March, 2002 BANK STATEMENT HAZARD COUNTY STATE BANK 215 Main Street Hazard, GA 30321 Cooter's Garage Account Number 629 Main Street 62-00062 Hazard, GA 30321 March 31, 2002 Beginning Balance 3/1/2002 $ 15,000.00 Total Deposits and Other Credits 7,050.00 Total Checks and Other Debits 6,005.00 Ending Balance 3/31/2002 $ 16,045.00 Checks and Debits Deposits and Credits Date Check No. Amount of Check Date 03/01/02 1462 $ 1,163.00 3/1/2002 $ 1,000.00 03/05/02 1463 62.00 3/2/2002 1,340.00 03/06/02 1464 1,235.00 3/6/2002 210.00 03/09/02 1465 750.00 3/12/2002 1,940.00 03/10/02 1466 1,111.00 3/17/2002 855.00 03/14/02 1467 964.00 3/22/2002 1,480.00 03/19/02 Debit Memo 20.00 Credit Memo 225.00 03/28/02 1468 700.00 The following is a list of checks and deposits recorded on the books of Cooter's Garage for March, 2002 Date Check Number Amount of Check Date Amount of Deposit 3/1/2002 1463 $ 62.00 3/1/2002 $ 1,340.00 3/5/2002 1464 1,235.00 3/5/2002 210.00 3/6/2002 1465 750.00 3/9/2002 1466 1,111.00 3/10/2002 1,940.00 3/10/2002 1467 964.00 3/14/2002 1468 70.00 3/16/2002 855.00 3/19/2002 1469 1,500.00 3/19/2002 1,480.00 3/28/2002 1470 102.00 3/29/2002 1,500.00 Other Information 1 Check no. 1462 was outstanding from February. (Hint: Not Applicable to current month.) 2 A credit memo for collection of accounts receivable was included in the bank statement. 3 All checks were paid by the bank at the correct amount. 4 The bank statement included a debit memo for service charges. 5 The February 28 bank reconciliation showed a deposit in transit of $1,000. 6 Check no. 1468 was for the purchase of equipment. 7 The unadjusted Cash account balance at March 31 was $16,368. Required a. Prepare the bank reconciliation for Cooters Garage at the end of March. b. Record in general journal form any necessary entries to the Cash account to adjust it to the true cash balance.Explanation / Answer
Cooter's garage Bank Reconciliation Details Amt $ Balance as per Bank statement as on Mar 31 2002 16,045 Add Deposit in Transit 1,500 Less : Credit for collection of AR 225 Less : Checks outstanding 1,469 1,500 1,470 102 Total Cheques outstanding 1,602 Add: Mistake in Cash GL in Check no 1468 630 Add : Bank service charge not is cash book 20 Balance as per Cash Journal as on Mar 31.2002 16,368 True cash balance Balance as per Cash Journal as on Mar 31.2002 16,368 Add : Credit memo for AR Collection 225 Less : Mistake in Check issue 1468 630 Less : Bank charge 20 True Cash Balance 15,943 Journal Entries Account Title Dr $ Cr $ Cash 225 Accounts Receivable 225 Equipment 630 Cash 630 Bank Charges 20 Cash 20