P8.6A (LO 3) Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company's Cash account per its general ledger showed a balance of $6,738.90. The bank statement from Emporia State Bank on that date showed the following balance. Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 6,968.00 A comparison of the details on the bank statement with the details in 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 $883.15 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $933.15. The bank credited Timmins Company for the cor- rect amount. 3. Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,880.15. 4. On May 18, the company issued check No. 1181 for $685 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $658. 5. $2,690 was collected by the bank for Timmins Company on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $360 that was incorrectly charged to Timmins Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $380 for a check issued by Sara Ballard, a customer, to Timmins Company on account. Instructions a. Prepare the bank reconciliation at May 31, 2020. b. Prepare the necessary adjusting entries for Timmins Company at May 31, 2020.
P8.6A (LO 3) Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company's Cash account per its general ledger showed a balance of $6,738.90. The bank statement from Emporia State Bank on that date showed the following balance. Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 6,968.00 A comparison of the details on the bank statement with the details in 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 $883.15 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $933.15. The bank credited Timmins Company for the cor- rect amount. 3. Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,880.15. 4. On May 18, the company issued check No. 1181 for $685 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $658. 5. $2,690 was collected by the bank for Timmins Company on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $360 that was incorrectly charged to Timmins Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $380 for a check issued by Sara Ballard, a customer, to Timmins Company on account. Instructions a. Prepare the bank reconciliation at May 31, 2020. b. Prepare the necessary adjusting entries for Timmins Company at May 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P8.6A (LO 3) Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer
for local farmers. On May 31, 2020, the company's Cash account per its general ledger showed a balance
of $6,738.90.
The bank statement from Emporia State Bank on that date showed the following balance.
Emporia State Bank
Checks and Debits
Deposits and Credits
Daily Balance
XXX
XXX
5-31 6,968.00
A comparison of the details on the bank statement with the details in 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 $883.15 on May 12 were deposited in the bank. The cash receipts entry and the
deposit slip were incorrectly made for $933.15. The bank credited Timmins Company for the cor-
rect amount.
3. Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,880.15.
4. On May 18, the company issued check No. 1181 for $685 to H. Moses, on account. The check, which
cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $658.
5. $2,690 was collected by the bank for Timmins Company on May 31 through electronic funds
transfer.
6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $360
that was incorrectly charged to Timmins Company by the bank.
7. On May 31, the bank statement showed an NSF charge of $380 for a check issued by Sara Ballard,
a customer, to Timmins Company on account.
Instructions
a. Prepare the bank reconciliation at May 31, 2020.
b. Prepare the necessary adjusting entries for Timmins Company at May 31, 2020.
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