On May 31, RDC Company had a cash balance per books of $13,022. The bank statement from City Bank on that date showed a balance of $15,120. A comparison of the bank statement with the company's Cash account revealed the following: 1. The bank statement included a bank service charge of $56, which is not recorded by RDC's book. 2. The bank statement included electronic collections from customers totaling $4,177. These were not previously recorded by the company. 3. Outstanding cheques at April 30 is $2,900. In May, $2,240 cheques are cleared by the bank, and $1,892 cheques are written by RDC. 4. A cheque $1,100 issued by ODC Inc. was incorrectly charged to RDC company by the City bank. 5. On May 31, the bank statement showed a returned (NSF) cheque for $1,340 issued by a customer in payment of its account. In addition, the bank charged $70 processing fee for this transaction. 6. The May 31 deposit of $2,065 was not included in the deposits on the May bank statement. The deposit had been placed in the bank's night deposit chute on May 31. Required: 1. Prepare the bank reconciliation per bank and per book at May 31 2. Prepare any journalfentries required from the reconciliation
On May 31, RDC Company had a cash balance per books of $13,022. The bank statement from City Bank on that date showed a balance of $15,120. A comparison of the bank statement with the company's Cash account revealed the following: 1. The bank statement included a bank service charge of $56, which is not recorded by RDC's book. 2. The bank statement included electronic collections from customers totaling $4,177. These were not previously recorded by the company. 3. Outstanding cheques at April 30 is $2,900. In May, $2,240 cheques are cleared by the bank, and $1,892 cheques are written by RDC. 4. A cheque $1,100 issued by ODC Inc. was incorrectly charged to RDC company by the City bank. 5. On May 31, the bank statement showed a returned (NSF) cheque for $1,340 issued by a customer in payment of its account. In addition, the bank charged $70 processing fee for this transaction. 6. The May 31 deposit of $2,065 was not included in the deposits on the May bank statement. The deposit had been placed in the bank's night deposit chute on May 31. Required: 1. Prepare the bank reconciliation per bank and per book at May 31 2. Prepare any journalfentries required from the reconciliation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On May 31, RDC Company had a cash balance per books of $13,022. The bank statement from City Bank on
that date showed a balance of $15,120. A comparison of the bank statement with the company's Cash account
revealed the following:
1. The bank statement included a bank service charge of $56, which is not recorded by RDC's book.
2. The bank statement included electronic collections from customers totaling $4,177. These were not
previously recorded by the company.
3. Outstanding checques at April 30 is $2,900. In May, $2,240 cheques are cleared by the bank, and
$1,892 cheques are written by RDC.
4. A cheque $1,100 issued by ODC Inc. was incorrectly charged to RDC company by the City bank.
5. On May 31, the bank statement showed a returned (NSF) cheque for $1,340 issued by a customer in
payment of its account. In addition, the bank charged $70 processing fee for this transaction.
6. The May 31 deposit of $2,065 was not included in the deposits on the May bank statement. The
deposit had been placed in the bank's night deposit chute on May 31.
Required:
1. Prepare the bank reconciliation per bank and per book at May 31
2. Prepare any journalfentries required from the reconciliation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9be39e5a-adc9-4cad-97c7-318042e2bc70%2F5e1bbeb9-1ee4-4545-95d0-cb87862e3983%2F5l2yi7g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On May 31, RDC Company had a cash balance per books of $13,022. The bank statement from City Bank on
that date showed a balance of $15,120. A comparison of the bank statement with the company's Cash account
revealed the following:
1. The bank statement included a bank service charge of $56, which is not recorded by RDC's book.
2. The bank statement included electronic collections from customers totaling $4,177. These were not
previously recorded by the company.
3. Outstanding checques at April 30 is $2,900. In May, $2,240 cheques are cleared by the bank, and
$1,892 cheques are written by RDC.
4. A cheque $1,100 issued by ODC Inc. was incorrectly charged to RDC company by the City bank.
5. On May 31, the bank statement showed a returned (NSF) cheque for $1,340 issued by a customer in
payment of its account. In addition, the bank charged $70 processing fee for this transaction.
6. The May 31 deposit of $2,065 was not included in the deposits on the May bank statement. The
deposit had been placed in the bank's night deposit chute on May 31.
Required:
1. Prepare the bank reconciliation per bank and per book at May 31
2. Prepare any journalfentries required from the reconciliation
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