Note ($3,000) and interest ($90) collected for Zing from a customer………….................... 3,090 — Corp prepares monthly bank reconciliations part its cash controls provided the

Zing Corp. prepares monthly bank reconciliations as part of its cash controls. Zing’s bank provided the following amount about Zing’s cash balance at the bank for during the month of April 2020:

Balance, April 30, 2020……………………………………………………….………… $74,350

Service charge for April ………………………………………………...……………..……….75

Note ($3,000) and interest ($90) collected for Zing from a customer………….................... 3,090

Interest earned during April …………………………………………………...……………... 140

NSF check from Orange Corp. (deposited by Zing) for goods purchased on account………. 470

Zing then analyzed its cash balance on its own set of books, revealing the following details:

Checking account balance per Zing’s books …………………………………. $72,329

Deposit in transit at April 30 ………………………………….………………… 2,100

🔒

Unlock the complete assignment

You are viewing the free preview. Purchase this assignment once to reveal the complete resource.

$9.99 USD

Secure checkout is completed by Stripe.

Outstanding checks as of April 30………………………………………………. 1,400

Error in recording a check issued by Zing. (Correct amount of the check

is $737, but was recorded as a cash disbursement of $773. The check

was issued to pay for merchandise originally purchased on account.) …………….. 36

Required:

1. Prepare a bank reconciliation at April 30, 2020, in proper form.

2. Record any necessary adjusting journal entries.

SOLUTION

				Zing Corp.	Zing Corp.
				Bank Reconciliation	Bank Reconciliation
				April 30, 2020	April 30, 2020
	Cash balance from bank statement……………………….…	Cash balance from bank statement……………………….…	Cash balance from bank statement……………………….…	Cash balance from bank statement……………………….…	Cash balance from bank statement……………………….…			$74,350	$74,350
	Add: Deposit in transit………………………………………...	Add: Deposit in transit………………………………………...	Add: Deposit in transit………………………………………...	Add: Deposit in transit………………………………………...	Add: Deposit in transit………………………………………...			2,100	2,100
	Less: Outstanding checks……………………………….……	Less: Outstanding checks……………………………….……	Less: Outstanding checks……………………………….……	Less: Outstanding checks……………………………….……	Less: Outstanding checks……………………………….……			(1,400)	(1,400)
	Adjusted cash balance…………………...…………………..	Adjusted cash balance…………………...…………………..	Adjusted cash balance…………………...…………………..	Adjusted cash balance…………………...…………………..	Adjusted cash balance…………………...…………………..
	Adjusted cash balance…………………...…………………..	Adjusted cash balance…………………...…………………..	Adjusted cash balance…………………...…………………..	Adjusted cash balance…………………...…………………..	Adjusted cash balance…………………...…………………..				$75,050
	Cash balance from company records……………...………	Cash balance from company records……………...………	Cash balance from company records……………...………	Cash balance from company records……………...………	Cash balance from company records……………...………			$72,329	$72,329
	Add:	Add:
	Interest earned during April……………………………….	Interest earned during April……………………………….	Interest earned during April……………………………….	Interest earned during April……………………………….	Interest earned during April……………………………….	$	140
	Note ($3,000) and interest ($90) collected………………	Note ($3,000) and interest ($90) collected………………	Note ($3,000) and interest ($90) collected………………	Note ($3,000) and interest ($90) collected………………	Note ($3,000) and interest ($90) collected………………		3,090
	Error recording check ($773 – $737)……………………..	Error recording check ($773 – $737)……………………..	Error recording check ($773 – $737)……………………..	Error recording check ($773 – $737)……………………..	Error recording check ($773 – $737)……………………..		36	3,266	3,266
	Less:	Less:
	Service charge……………………………………..…………	Service charge……………………………………..…………	Service charge……………………………………..…………	Service charge……………………………………..…………	Service charge……………………………………..…………	$	75
	NSF check………………….………………………………..	NSF check………………….………………………………..	NSF check………………….………………………………..	NSF check………………….………………………………..	NSF check………………….………………………………..		470	(545)	(545)
	Adjusted cash balance	Adjusted cash balance	Adjusted cash balance	Adjusted cash balance	Adjusted cash balance
	Adjusted cash balance	Adjusted cash balance	Adjusted cash balance	Adjusted cash balance	Adjusted cash balance				$75,050
2.				Journal	Journal
	Date	Date		Account and Explanation		Debit	Debit		Credit
				Bank Service Charge Expense			75
				Cash				75	75
				Cash			140
				Income Revenue				140	140
				Accounts Receivable			470
				Cash				470	470
				Cash			3,090
				Notes Receivable				3,000	3,000
				Income Revenue				90	90
				Cash			36
				Accounts Payable				36	36