The following information was used to prepare the March 2016,
bank reconciliation for Sam's Store. Identify the items that
require adjustment to the cash balance per books and prepare the
appropriate adjusting entries.
1. Included with the bank statement materials was a
check from Stan Kenton for $50 stamped "NSF."
2. A personal deposit by Sam Snead to his personal
account in the amount of $380 for dividends on his General
Motors common stock was credited to the company account.
3. The bank statement included a debit memorandum
for $31.00 for two books of blank checks for Sam's Store.
4. The bank statement contains a credit memorandum
for $27.45 interest on the average checking account balance.
5. The daily deposits of March 30 and March 31, for
$3,632 and $3,215 respectively, were not included in the
bank statement postings.
6. Two checks totaling $361.86, which were
outstanding at the end of February, cleared in March and
were returned with the March statement.
7. The bank statement included a credit memorandum
dated March 28, 2016, for $54.00 for the monthly interest on
a 6-month, $18,000 certificate of deposit that the company
owns.
8. Four checks, #8722, #8726, #8728, #8729, totaling
$5,936.65, did not clear the bank during March.
9. On March 24, 2016, Sam's Store delivered to the
bank for collection a $5,400, 3-month note from Bill Becker.
A credit memorandum dated March 29, 2016, indicated the
collection of the note and $120.00 of interest.
10. The bank statement included a debit memorandum
for $25.00 for the collection service on the above note and
interest.
