Question

SP 6 Santana Rey receives the March bank statement for Business Solutions on April 11, 2018. The March 31 bank statement shows an ending cash balance of \(67,566. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.

a. S. Rey notices that the bank erroneously cleared a \)500 check against her account in March that she did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Business Systems.

b. On March 25, the bank lists a \(50 charge for the safety deposit box expense that Business Solutions agreed to rent from the bank beginning March 25.

c. On March 26, the bank lists a \)102 charge for printed checks that Business Solutions ordered from the bank.

d. On March 31, the bank lists \(33 interest earned on Business Solutions’s checking account for the month of March.

e. S. Rey notices that the check she issued for \)128 on March 31, 2018, has not yet cleared the bank.

f. S. Rey verifies that all deposits made in March do appear on the March bank statement.

g. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,057 as of March 31 (prior to any reconciliation).

Required

2. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, No. 677, for any bank charges. Use Interest Revenue, No. 404, for any interest earned on the checking account for the month of March.

Short answer

Answer

Miscellaneous Expenses (safety deposit box rental) $50;

Miscellaneous Expenses (printing checks) $102;

Interest Revenue $33.

Adjusting entries are shown in step 2.

Step-by-step solution

Step-by-Step SolutionStep 1: Introduction to topic

Accounting Journal- An accounting journal shows the impact of a business transaction in terms of credits and debits and explains narration. The journal shows a point by a detailed account of every financial exchange, and reconciles records and moves accounting data to other accounting records.

Journal entries

Date	Transaction	Debit($)	Credit($)
Mar. 25	Miscellaneous Expenses	50
	Cash		50
	To record safety deposit box rental.
Mar. 26	Miscellaneous Expenses	102
	Cash		102
	To record charge for printing checks
Mar. 31	Cash	33
	Interest Revenue		33
	To record interest earned.