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.
