Gray Corporation recently received its March 2010 bank statement, started its monthly bank reconciliation, and noticed the following reconciling items.

Additional Information
• Excluding the reconciling items noted above, Gray's cash account balance per general ledger is $1,987.50, and its cash balance per bank statement is $327.50.
• When Check #127 was issued to buy office supplies, the check was mistakenly recorded as $70 rather than $700. Gray has used all the office supplies purchased with check #127.
• Gray believes that the customer who gave the NSF check will pay the company in the near future.
Required:
a. Prepare Gray's March 2010 bank reconciliation.
b. Prepare any necessary journal entries to adjust Gray's cash account balance per general ledger.

Question

Gray Corporation recently received its March 2010 bank statement, started its monthly bank reconciliation, and noticed the following reconciling items.

Additional Information
•	Excluding the reconciling items noted above, Gray's cash account balance per general ledger is $1,987.50, and its cash balance per bank statement is $327.50.
•	When Check #127 was issued to buy office supplies, the check was mistakenly recorded as $70 rather than $700. Gray has used all the office supplies purchased with check #127.
•	Gray believes that the customer who gave the NSF check will pay the company in the near future.
Required:
a.	Prepare Gray's March 2010 bank reconciliation.
b.	Prepare any necessary journal entries to adjust Gray's cash account balance per general ledger.

Quizplus · Accepted Answer

The Answer of Gray Corporation recently received its March 2010 bank statement, started its monthly bank reconciliation, and noticed the following reconciling items.

Additional Information
•	Excluding the reconciling items noted above, Gray's cash account balance per general ledger is $1,987.50, and its cash balance per bank statement is $327.50.
•	When Check #127 was issued to buy office supplies, the check was mistakenly recorded as $70 rather than $700. Gray has used all the office supplies purchased with check #127.
•	Gray believes that the customer who gave the NSF check will pay the company in the near future.
Required:
a.	Prepare Gray's March 2010 bank reconciliation.
b.	Prepare any necessary journal entries to adjust Gray's cash account balance per general ledger.

Gray Corporation Recently Received Its March 2010 Bank Statement, Started