The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The bank statement for May 1 andthe May T-account for cash showed the transactions listed below.Martin Company's bank reconciliation at the end of April showed a cash balance of $19,600. No deposits were in transit at the end ofApril, but a deposit was in transit at the end of May.Balance, May 1May 2May 5May 7May 8May 14May 17-Interest EarnedMay 22-NSF chequeMay 29May 31-Service chargesBalance, May 31May 1May 1May 7May 29BalanceMay 31 BalanceDeductions:View transaction list+ Cash (A) -19,6008,800Bank StatementEnding balance per bank statementAdditions:10,0004,800Required:1. Prepare a bank reconciliation for May.18,440DateMay 17Journal entry worksheet< A B CRecord entryC)Note: Enter debits before credits.11,8005,6005805,4001,380$General JournalWithdrawals Deposits Other Balance$19,600$ 8,800Clear entry301 $11,800# 302 5,600# 303# 30458005,400May 02May 04May 11May 30May 29a) Record the interest earned on May 17.b) Record the entry for NSF cheque noted on May 22.Record the bank service charges incurred on May 31.10,000MARTIN COMPANYBank ReconciliationAt May 31Up-to-date cash balance0 Up-to-date cash balance2. Prepare any journal entries required as a result of the bank reconciliation. (If no entry is required for a transaction/event,select "No journal entry required" in the first account field.)#301#302#303#304#305Deductions:Debit$ 12836068Company's BooksEnding balance per Cash accountAdditions:Credit28,40016,60011,00021,00020,42020,548View general journal20,18814,78814,72014,720$000

Answered: Bank Statement MARTIN COMPANY Bank…

Business

Accounting

Bank Statement MARTIN COMPANY Bank Reconciliation At May 31 Company's Books

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The bank statement for May 1 and
the May T-account for cash showed the transactions listed below.
Martin Company's bank reconciliation at the end of April showed a cash balance of $19,600. No deposits were in transit at the end of
April, but a deposit was in transit at the end of May.
Balance, May 1
May 2
May 5
May 7
May 8
May 14
May 17-Interest Earned
May 22-NSF cheque
May 29
May 31-Service charges
Balance, May 31
May 1
May 1
May 7
May 29
Balance
May 31 Balance
Deductions:
View transaction list
+ Cash (A) -
19,600
8,800
Bank Statement
Ending balance per bank statement
Additions:
10,000
4,800
Required:
1. Prepare a bank reconciliation for May.
18,440
Date
May 17
Journal entry worksheet
< A B C
Record entry
C)
Note: Enter debits before credits.
11,800
5,600
580
5,400
1,380
$
General Journal
Withdrawals Deposits Other Balance
$19,600
$ 8,800
Clear entry
301 $11,800
# 302 5,600
# 303
# 304
580
0
5,400
May 02
May 04
May 11
May 30
May 29
a) Record the interest earned on May 17.
b) Record the entry for NSF cheque noted on May 22.
Record the bank service charges incurred on May 31.
10,000
MARTIN COMPANY
Bank Reconciliation
At May 31
Up-to-date cash balance
0 Up-to-date cash balance
2. Prepare any journal entries required as a result of the bank reconciliation. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
#301
#302
#303
#304
#305
Deductions:
Debit
$ 128
360
68
Company's Books
Ending balance per Cash account
Additions:
Credit
28,400
16,600
11,000
21,000
20,420
20,548
View general journal
20,188
14,788
14,720
14,720
$
0
0
0

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