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 informationPA5-2 (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 bankstatement 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 $17,900. No deposits were in transit atthe end of April, but a deposit was in transit at the end of May.ChecksBANK STATEMENTDepositsOtherBalanceBalance, May 1May 2$ 7,000May 5$ 17,90024,90014,900May 7May 89,3009,000May 1418,30017,820May 1717,930May 2217,670May 2713,270May 3113,200Balance, May 3113,200May 1May 1May 7May 29May 31DebitBalanceBalance**# 301# 302#303# 304$ 10,0005,6004804,400Cash (A)17,9007,0009,0005,60017,92010,0005,6004804,4001,100Interest earnedNSF checkService charge# 301 May 2#302 May 4# 303 May 11# 304 May 23#305 May 29Credit8 of 10‒‒‒▪▪▪$ 11026070Next >

The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Answered: Part 1: Prepare a bank reconciliation…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.4.3P

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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 >

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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