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    Trex Co.

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    The following information is available for Trex Co.:

    a) Balance per the bank staement dated March 31, 2007, is $32,950.
    b) Balance of the Cash account on the company books as of March 31, 2007 is $31,396
    c) Included with the bank statement was a $35 credit memorandum for the interest earned
    on the bank account during the month.
    d) Bank deposit of March 31, 2007, for $1,300 does not appear on the bank statement.
    e) Bank service charges for the month amount to $30.
    f) Cheque#824, for office supplies in the amount of $697, was recorded incorrectly in
    the Cash Disbursements Journal as $796.
    g) Cheques written that had not cleared the bank by March 31, 2007, were the following:
    1. #835: $1,200
    2. #848: $950
    3. #836: $950
    h) Included with the bank statement was an NSF cheque for $650 that had been received
    from a customer in payment of his account.
    i) The bank had collected a $300 note on behalf of Trex Co.

    Required:

    a. Prepare the bank reconciliation at March 31,2007.

    b. Prepare any adjusting journal entries relating to this bank reconciliation.

    Date Account Titles and Explanation Debit Credit

    c. Identify 2 reasons why bank reconciliations must be prepared regularly?

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    https://brainmass.com/business/bank-reconciliation/trex-balance-cash-accounts-269437

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    Solution Preview

    The following information is available for Trex Co.:

    a) Balance per the bank statement dated March 31, 2007, is $32,950.
    b) Balance of the Cash account on the company books as of March 31, 2007 is $31,396
    c) Included with the bank statement was a $35 credit memorandum for the interest earned ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare the bank reconciliation at March 31,2007.

    $2.19

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