Bank Reconciliation: Determining True Cash Balance and Journal Entry for Aggie Food Store , Exercises of Accounting

Download Bank Reconciliation: Determining True Cash Balance and Journal Entry for Aggie Food Store and more Exercises Accounting in PDF only on Docsity! Recommended Problem: Bank Reconciliation Aggie Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31 $ 4,192 Balance per bank statement March 31 $11,400 (1) Checks written in March but still outstanding $8,000. (2) Checks written in February but still outstanding $3,200. (3) Deposits in Transit $7,200. (4) NSF check of customer returned by bank $700. (5) Check No. 210 for $591 was correctly issued and paid by bank but incorrectly entered by the bookkeeper as payment on account for $519. (6) Bank service charge for March was $50. (7) The bank collected a note receivable for the company for $4000 plus $150 interest revenue. (8) The bank improperly debited the company’s account for $120 when processing a check for Aggie Supply Store. Required: (a) Determine the true cash balance for the Aggie Food Store as of March 31: $____________ (b) Prepare the necessary journal entry to record the collection of the note receivable and interest.