Question

Mar. 1 CMS began operations by receiving $100,000 in cash. The business issued shares of common stock in exchange for this contribution. Mar. 1 CMS paid $1,200 for a 12 month insurance policy. The policy begins Mar. 1. Mar. 4 CMS guided a small rock climbing trip, receiving $20,000 payment in cash. Mar. 22 Collected $3,000 cash from customer on account. Mar. 24 Paid rent on their property, $4,000 cash. Mar. 27 Paid $1,000 cash on account. Mar. 31 Cash dividends of $2,500 were paid to stockholders.Prepare the bank reconciliation at March 31, 2021.
Journalize any required entries from the bank reconciliation.
Prepare a cash t-account to verify the balance of the account matches the adjusted book balance from the bank.

Answer 1

Answer:

Reconciled Bank Balance $114,300.

Explanation:

Cash for operations $100,000

Less: Insurance policy subscription $1,200

Add: Fee for services $20,000

Add: Cash Collection $3,000

Less: Rent expense $4,000

Less: Payment on account $1,000

Less: Cash Dividends paid $2,500

Reconciled Balance $114,300