aughn Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company’s Cash account per its general ledger showed a balance of $6,000.00. The bank statement from Emporia State Bank on that date showed the following balance. Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 7,008.00 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $50 for the printing of additional company checks. 2. Cash sales of $922.64 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $972.64. The bank credited Vaughn Company for the correct amount. 3. Outstanding checks at May 31 totaled $775.45, and deposits in transit were $1,633.45. 4. On May 18, the company issued check No. 1181 for $671 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Vaughn Company for $617. 5. $2,900 was collected from a customer’s note receivable by the bank for Vaughn Company on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $460 that was incorrectly charged to Vaughn Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $420 for a check issued by Sara Ballard, a customer, to Vaughn Company on account. (a) Prepare the bank reconciliation at May 31, 2022. (List items that i

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Vaughn Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company’s Cash account per its general ledger showed a balance of $6,000.00. The bank statement from Emporia State Bank on that date showed the following balance.

 

Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 7,008.00

 

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

 

1. The statement included a debit memo of $50 for the printing of additional company checks.

 

2. Cash sales of $922.64 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $972.64. The bank credited Vaughn Company for the correct amount.

 

3. Outstanding checks at May 31 totaled $775.45, and deposits in transit were $1,633.45.

 

4. On May 18, the company issued check No. 1181 for $671 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Vaughn Company for $617.

 

5. $2,900 was collected from a customer’s note receivable by the bank for Vaughn Company on May 31 through electronic funds transfer.

 

6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $460 that was incorrectly charged to Vaughn Company by the bank.

 

7. On May 31, the bank statement showed an NSF charge of $420 for a check issued by Sara Ballard, a customer, to Vaughn Company on account.

 

(a) Prepare the bank reconciliation at May 31, 2022. (List items that increase cash balance first.)

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Property Taxes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education