Part 1: Prepare a bank reconciliation for may. Part 2: 1. Record the interest of $110 receipt from the bank. 2. Record the return of the customer check of $260 due to insufficient funds. 3. Record the service charges of $70 deducted by the bank. Part 3: 1. After the reconciliation journal entries are posted what balance will be reflected in the cash amount in the ledger? 2.  4. If the company also has $60 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what totall amount of Cash and Cash Equivalents should be reported on the balance sheet at the end of May?
Part 1: Prepare a bank reconciliation for may. Part 2: 1. Record the interest of $110 receipt from the bank. 2. Record the return of the customer check of $260 due to insufficient funds. 3. Record the service charges of $70 deducted by the bank. Part 3: 1. After the reconciliation journal entries are posted what balance will be reflected in the cash amount in the ledger? 2.  4. If the company also has $60 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what totall amount of Cash and Cash Equivalents should be reported on the balance sheet at the end of May?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Part 1:
Prepare a bank reconciliation for may.
Part 2:
1. Record the interest of $110 receipt from the bank.
2. Record the return of the customer check of $260 due to insufficient funds.
3. Record the service charges of $70 deducted by the bank.
Part 3:
1. After the reconciliation journal entries are posted what balance will be reflected in the cash amount in the ledger?
2.  4. If the company also has $60 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what totall amount of Cash and Cash Equivalents should be reported on the balance sheet at the end of May?
![Required information
PA5-2 (Algo) Preparing a Bank Reconciliation and Journal Entries and Reporting Cash [LO 5-4, LO 5-5]
[The following information applies to the questions displayed below.]
The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank
statement and the May T-account for cash (summarized) are below.
Martin Company's bank reconciliation at the end of April showed a cash balance of $17,900. No deposits were in transit at
the end of April, but a deposit was in transit at the end of May.
Checks
BANK STATEMENT
Deposits
Other
Balance
Balance, May 1
May 2
$ 7,000
May 5
$ 17,900
24,900
14,900
May 7
May 8
9,300
9,000
May 14
18,300
17,820
May 17
17,930
May 22
17,670
May 27
13,270
May 31
13,200
Balance, May 31
13,200
May 1
May 1
May 7
May 29
May 31
Debit
Balance
Balance
**
# 301
# 302
#303
# 304
$ 10,000
5,600
480
4,400
Cash (A)
17,900
7,000
9,000
5,600
17,920
10,000
5,600
480
4,400
1,100
Interest earned
NSF check
Service charge
# 301 May 2
#302 May 4
# 303 May 11
# 304 May 23
#305 May 29
Credit
8 of 10
‒‒‒
▪▪▪
$ 110
260
70
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb76c74f-33f9-4776-941a-47446e3aad13%2F6518110d-1040-4976-8293-70bbb9fe9113%2Fk52siuc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
PA5-2 (Algo) Preparing a Bank Reconciliation and Journal Entries and Reporting Cash [LO 5-4, LO 5-5]
[The following information applies to the questions displayed below.]
The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank
statement and the May T-account for cash (summarized) are below.
Martin Company's bank reconciliation at the end of April showed a cash balance of $17,900. No deposits were in transit at
the end of April, but a deposit was in transit at the end of May.
Checks
BANK STATEMENT
Deposits
Other
Balance
Balance, May 1
May 2
$ 7,000
May 5
$ 17,900
24,900
14,900
May 7
May 8
9,300
9,000
May 14
18,300
17,820
May 17
17,930
May 22
17,670
May 27
13,270
May 31
13,200
Balance, May 31
13,200
May 1
May 1
May 7
May 29
May 31
Debit
Balance
Balance
**
# 301
# 302
#303
# 304
$ 10,000
5,600
480
4,400
Cash (A)
17,900
7,000
9,000
5,600
17,920
10,000
5,600
480
4,400
1,100
Interest earned
NSF check
Service charge
# 301 May 2
#302 May 4
# 303 May 11
# 304 May 23
#305 May 29
Credit
8 of 10
‒‒‒
▪▪▪
$ 110
260
70
Next >
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