bank reconciliation
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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Question
![Peterson Company's general ledger shows a cash balance of $7,720 on May 31. May cash receipts of $1,340, included in the general
ledger balance, are placed in the night depository at the bank on May 31 and processed by the bank on June 1. The bank statement
dated May 31 shows an NSF check for $190 and a service fee of $60. The bank processes all checks written by the company by May
31 and lists them on the bank statement, except for one check totaling $1,710. The bank statement shows a balance of $7,840 on May
31.
Prepare a bank reconciliation to calculate the correct ending balance of cash on May 31. (Amounts to be deducted should be
indicated with a minus sign.)
Bank's Cash Balance
Before reconciliation
After reconciliation
PETERSON COMPANY
Bank Reconciliation
May 31
SA
Company's Cash Balance
Before reconciliation
0 After reconciliation
SA
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48d06d4f-6c09-49bb-b08f-73b8dd1bd7de%2Fa6c06ffe-7140-4d7e-b52f-3690b6077d46%2Fcpww5w8_processed.png&w=3840&q=75)
Transcribed Image Text:Peterson Company's general ledger shows a cash balance of $7,720 on May 31. May cash receipts of $1,340, included in the general
ledger balance, are placed in the night depository at the bank on May 31 and processed by the bank on June 1. The bank statement
dated May 31 shows an NSF check for $190 and a service fee of $60. The bank processes all checks written by the company by May
31 and lists them on the bank statement, except for one check totaling $1,710. The bank statement shows a balance of $7,840 on May
31.
Prepare a bank reconciliation to calculate the correct ending balance of cash on May 31. (Amounts to be deducted should be
indicated with a minus sign.)
Bank's Cash Balance
Before reconciliation
After reconciliation
PETERSON COMPANY
Bank Reconciliation
May 31
SA
Company's Cash Balance
Before reconciliation
0 After reconciliation
SA
0
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