On May 31, 2024, Sunland Theatre's cash account per its general ledger showed the following balance: Date May 31 Cheques and Debits XXX 1. 2. The bank statement from Canada Bank on that date showed the following balance: 3. CASH Explanation Ref Debit Credit Balance 4. 5. No. 101 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. Balance XXX 7,662 CANADA BANK Deposits and Credits Daily Balance- 5/31 7,620 The statement included a debit memo of $50 for the monthly bank service charges. Cash sales of $936 on May 12 were deposited in the bank. The bookkeeper recorded the deposit in the cash journal as $946. Outstanding cheques on May 31 totalled $577 and deposits in transit were $1.608. On May 18, the company issued cheque #1581 for $684 to M. Lewis, on account. The cheque, which cleared the bank in May. was incorrectly journalized and posted by Sunland Theatre for $648. A $2,800 note receivable was wired to the bank account of Sunland Theatre on May 31. Interest was not collected for the note.
On May 31, 2024, Sunland Theatre's cash account per its general ledger showed the following balance: Date May 31 Cheques and Debits XXX 1. 2. The bank statement from Canada Bank on that date showed the following balance: 3. CASH Explanation Ref Debit Credit Balance 4. 5. No. 101 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. Balance XXX 7,662 CANADA BANK Deposits and Credits Daily Balance- 5/31 7,620 The statement included a debit memo of $50 for the monthly bank service charges. Cash sales of $936 on May 12 were deposited in the bank. The bookkeeper recorded the deposit in the cash journal as $946. Outstanding cheques on May 31 totalled $577 and deposits in transit were $1.608. On May 18, the company issued cheque #1581 for $684 to M. Lewis, on account. The cheque, which cleared the bank in May. was incorrectly journalized and posted by Sunland Theatre for $648. A $2,800 note receivable was wired to the bank account of Sunland Theatre on May 31. Interest was not collected for the note.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 3 of 4
On May 31, 2024, Sunland Theatre's cash account per its general ledger showed the following balance:
Date
May 31
Cheques and Debits
XXX
1.
2.
3.
<
Balance
4.
Explanation Ref
5.
CASH
The bank statement from Canada Bank on that date showed the following balance:
Debit Credit
No. 101
CANADA BANK
Deposits and Credits
XXX
Balance
A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.
The statement included a debit memo of $50 for the monthly bank service charges.
Cash sales of $936 on May 12 were deposited in the bank. The bookkeeper recorded the deposit in the cash journal as $946.
Outstanding cheques on May 31 totalled $577 and deposits in transit were $1,608.
On May 18, the company issued cheque # 1581 for $684 to M. Lewis, on account. The cheque, which cleared the bank in May.
was incorrectly journalized and posted by Sunland Theatre for $648.
7,662
Daily Balance
5/31
7,620
-/6 E
A $2,800 note receivable was wired to the bank account of Sunland Theatre on May 31. Interest was not collected for the
note.
***
Transcribed Image Text:5.
6.
7.
(a)
-/6
!!!
A $2.800 note receivable was wired to the bank account of Sunland Theatre on May 31. Interest was not collected for the
note.
Prepare the bank reconciliation at May 31. (List items that increase balance as per bank & books first.)
SUNLAND THEATRE
Bank Reconciliation
E
Included with the cancelled cheques was a cheque issued by Flint Theatre for $670 that was incorrectly charged to Sunland
Theatre by the bank.
#
On May 31, the bank statement showed an NSF charge of $1,045 for a cheque issued by Tyler Walker, a customer, to Sunland
Theatre on account. This payment was previously deposited by Sunland Theatre. The NSF charge included a $10 processing
fee. The company's policy is to pass on all NSF service charges to the customer.
***
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