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Prepare its bank reconciliation using the above information.

Prepare its bank reconciliation using the above information.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wright Company's cash account shows a $27,900 debit balance, and its bank statement shows $26,200 on deposit at the close of business on May 31. a. The May 31 bank statement lists $120 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $5,800. c. May 31 cash receipts of $6,400 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. d. In reviewing the bank statement, a $420 check written by Smith Company was mistakenly drawn against Wright’s account. e. The bank statement shows a $560 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information. --- **WRIGHT COMPANY** **Bank Reconciliation** **May 31** | | Bank statement balance | Book balance | |-------------------------|------------------------|---------------| | | | | | **Add:** | | | | | | | | | | | | | | | | **Deduct:** | | | | | | | | | | | | | | | | **Adjusted bank balance** | | **Adjusted book balance** |
Transcribed Image Text:Wright Company's cash account shows a $27,900 debit balance, and its bank statement shows $26,200 on deposit at the close of business on May 31. a. The May 31 bank statement lists $120 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $5,800. c. May 31 cash receipts of $6,400 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. d. In reviewing the bank statement, a $420 check written by Smith Company was mistakenly drawn against Wright’s account. e. The bank statement shows a $560 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information. --- **WRIGHT COMPANY** **Bank Reconciliation** **May 31** | | Bank statement balance | Book balance | |-------------------------|------------------------|---------------| | | | | | **Add:** | | | | | | | | | | | | | | | | **Deduct:** | | | | | | | | | | | | | | | | **Adjusted bank balance** | | **Adjusted book balance** |
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