P8-3A On May 31, Sosa Company had a cash balance per books of $6,781.50. The bank statement from Sandwich Community Bank on that date showed a balance of $6,804.60. A comparison of the statement with the cash account revealed the following facts: 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $846.15. The bank credited Sosa Company for the correct amount. 3. Outstanding checks at May 12 totaled $276.25. Deposits in transit were $1,936.15. 4. On May 18, the company issued check No.1181 for $685 to Kap Shin, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sosa Company for $658. 5. A $3,000 note receivable was collected by the bank for Sosa Company on May 31 plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Tacamoto Company to Yee Chow for $600 that was incorrectly charged to Sosa Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $700 for a check issued by John Lewis, a customer, to Sosa Company on account. Instructions: (a) Prepare the bank reconciliation at May 31.
P8-3A On May 31, Sosa Company had a cash balance per books of $6,781.50. The bank statement from Sandwich Community Bank on that date showed a balance of $6,804.60. A comparison of the statement with the cash account revealed the following facts: 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $846.15. The bank credited Sosa Company for the correct amount. 3. Outstanding checks at May 12 totaled $276.25. Deposits in transit were $1,936.15. 4. On May 18, the company issued check No.1181 for $685 to Kap Shin, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sosa Company for $658. 5. A $3,000 note receivable was collected by the bank for Sosa Company on May 31 plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Tacamoto Company to Yee Chow for $600 that was incorrectly charged to Sosa Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $700 for a check issued by John Lewis, a customer, to Sosa Company on account. Instructions: (a) Prepare the bank reconciliation at May 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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