At 31 March 2015, the balance of the Cash account according to the records of
Harmony Company was $14,432. The 31 March bank statement showed a balance of
$17,596. You are going to prepare the bank reconciliation of Harmony Company at
31 March 2015, using the following supplementary information:
(1) Service charge by bank, $100.
(2) The bank has collected a total of $10,100 and directly credited to Harmony, which
represents the principal and interest owed by Peace Company. Interest
amounted to $200.
(3) A check for $180 drawn by a customer, Charlotte Lava, but deducted from
Harmony’s account by the bank and returned with the notation “NSF.”
(4) Harmony’s records showed that it has made a total deposit of $32,088 during
March 2015, but according to the bank statement it only showed deposits of
$18,544. No deposit-in-transit is carried forwarded from February 2015.
(5) Outstanding checks: no. 18120, $280; no. 18121, $1,864; no. 18127, $614; no.
18134, $4,400.
(6) Harmony’s check no. 18114, issued in payment of $1,960 worth of supplies,
correctly written in the amount of $1,960 but erroneously recorded in Harmony’s
accounting records as $1,690.
Required
(a) Prepare the bank reconciliation for Harmony Company as of 31 March 2015.