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. BANK STATEMENT Deposits $ 7,000 Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17 May 22 May 27 May 31 Balance, May 31 May 1 May 1 May 7 May 29 May 31 Debit Balance Balance #301 #302 #303 #304 Checks $ 10,000 5,600 480 Cash (A) 17,900 7,000 9,000 5,600 4,400 17,920 10,000 5,600 480 4,400 1,100 9,000 Interest earned NSF check Other Service charge Credit #301 May 2 #302 May 4 #303 May 11 #304 May 23 #305 May 29 $ 110 260 70 Balance $ 17,900 24,900 14,900 9,300 18,300 17,820 17,930 17,670 13,270 13,200 13,200
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. BANK STATEMENT Deposits $ 7,000 Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17 May 22 May 27 May 31 Balance, May 31 May 1 May 1 May 7 May 29 May 31 Debit Balance Balance #301 #302 #303 #304 Checks $ 10,000 5,600 480 Cash (A) 17,900 7,000 9,000 5,600 4,400 17,920 10,000 5,600 480 4,400 1,100 9,000 Interest earned NSF check Other Service charge Credit #301 May 2 #302 May 4 #303 May 11 #304 May 23 #305 May 29 $ 110 260 70 Balance $ 17,900 24,900 14,900 9,300 18,300 17,820 17,930 17,670 13,270 13,200 13,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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.
BANK STATEMENT
Deposits
$ 7,000
Balance, May 11
May 2
May 5
May 7
May B
May 14
May 17
May 22
May 27
May 31
Balance, May 31
May 1
May 1
May 7
May 29
May 31
Debit
Balance
Balance in Cash Account
Balance
#301
#302
#303
#304
Checks
$ 10,000
5,600
480
Cash (A)
17,900
7,000
9,000
5,600
4,400
17,920
10,000
5,600
480
4,400
1,100
9,000
Interest earned
NSP check
Service charge
Credit
Other
#301 May 2
#302 May 4
#303 May 11
#304 May 23
#305 May 29
$ 110
260
70
Balance
$ 17,900
24,900
14,900
9,300
18,300
17,820
17,930
17,670
13,270
13,200
13,200
PA5-2 (Algo) Part 3
3. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe26c8f8d-7152-4fa4-bb7e-a199e05b3e8e%2Fdeafd591-d2bc-4dba-844c-fe6045f9fb36%2Fejxtj6m_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.
BANK STATEMENT
Deposits
$ 7,000
Balance, May 11
May 2
May 5
May 7
May B
May 14
May 17
May 22
May 27
May 31
Balance, May 31
May 1
May 1
May 7
May 29
May 31
Debit
Balance
Balance in Cash Account
Balance
#301
#302
#303
#304
Checks
$ 10,000
5,600
480
Cash (A)
17,900
7,000
9,000
5,600
4,400
17,920
10,000
5,600
480
4,400
1,100
9,000
Interest earned
NSP check
Service charge
Credit
Other
#301 May 2
#302 May 4
#303 May 11
#304 May 23
#305 May 29
$ 110
260
70
Balance
$ 17,900
24,900
14,900
9,300
18,300
17,820
17,930
17,670
13,270
13,200
13,200
PA5-2 (Algo) Part 3
3. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education