Required information [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). Martin Company's bank reconciliation at the end of April showed a cash balance of $21,000. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. 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 Balance. May 1 May 7 May 29 May 31 Balance Checks # 301 $11,000 # 302 7,000 #303 BANK STATEMENT Deposits $ 8,000 # 304 5,100 21,000 8,000 10,000 7,000 550 Cash (A) 20,550 10,000 11,000 7,000 550 5,100 1,800 Interest Other NSF check Service charge # 301 May 2 #302 May 4 # 303 May 11 # 304 May 23 #305 May 29 $170 330 85 Balance $ 21,000 29,000 18,000 11,000 21,000 20,450 20,620 20,290 15,190 15,105 15,105 1) Prepare a bank reconciliation for May.

Required information [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). Martin Company's bank reconciliation at the end of April showed a cash balance of $21,000. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. 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 Balance. May 1 May 7 May 29 May 31 Balance Checks # 301 $11,000 # 302 7,000 #303 BANK STATEMENT Deposits $ 8,000 # 304 5,100 21,000 8,000 10,000 7,000 550 Cash (A) 20,550 10,000 11,000 7,000 550 5,100 1,800 Interest Other NSF check Service charge # 301 May 2 #302 May 4 # 303 May 11 # 304 May 23 #305 May 29 $170 330 85 Balance $ 21,000 29,000 18,000 11,000 21,000 20,450 20,620 20,290 15,190 15,105 15,105 1) Prepare a bank reconciliation for May.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized): Balance, April 1, Current Year BANK STATEMENT Deposits during April Interest collected Checks cleared during April NSF check-A. B. Wright Bank service charges Balance, April 30, Current Year Checks Deposits Balance $32,500 $37,300 69,800 1,350 71,150 $44,500 300 70 26,650 26,350 26,280 26,280 Cash (A) Debit Credit April 1 Balance April Deposits 24,300 42,400 April Checks written 42,600 A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $6,300 (including $4,400 written before and $1,900 written during April). No deposits in transit were carried over from March,…
Shown below is the information needed to prepare a bank reconciliation for Alpha Communications at December 31, 2018: At December 31, cash per bank statement was $16,200; cash per the company’s records was $17,225. Two debit memoranda accompanied the bank statement: services charges for December of $25, and a $775 check drawn by Jane Jones marked “NSF”. Cash receipts of $9,000 on December 31 were deposited at the bank by end of day but were not shown in the bank statement until January 4. The following checks had been issued (written) in December but were not included among the paid checks returned by the bank: check no. 410 for $8,000 and check no. 425 for $2,500. Included in the bank statement was a check withdrawn (written) for an amount of $5,300 (rent expense) that was erroneously recorded for $3,500 in Alpha's records. The bank statement shows a credit (memorandum) interest of $75. Instructions Prepare a bank reconciliation at December 31, 2018. Prepare the…
The treasurer preparing the October bank reconciliation identified the following items: Cash balance per the company's records $32,700, Deposits in Transit $4,300, Outstanding Checks $2,200, Interest earned on the checking account $200, Customer NSF check $400. What is the company's adjusted cash balance at Oct. 31? A. $34,900 B. $32,700 C. $32,500 D. $34,800
provide full solution
Prepare any necessary journal entries that Organic Food Company must record as a result of preparing the bank reconciliation. Organic Food Company's Cash account shows a $7,200 debit balance and its bank statement shows $6,350 on deposit at the close of business on August 31. August 31 cash receipts of $2,940 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement. The bank statement shows a $290 NSF check from a customer; the company has not yet recorded this NSF check. Outstanding checks as of August 31 total $2,820. In reviewing the bank statement, an $250 check written by Organic Fruits was mistakenly drawn against Organic Food’s account. The August 31 bank statement lists $190 in bank service charges; the company has not yet recorded the cost of these services.
Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 31 the cash account had a balance of $6,105.42. The bank statement on July 31 reported a balance of $4,146.46. Upon comparing the bank statement to the books, the following items were found.
QUESTION: ON OCTOBER 31, 2015, THE BANK STATEMENT FOR THE CHECKING ACCOUNT OF BLOCKWOOD VIDEO SHOWS A BALANCE OF $12,818, WHILE THE COMPANY S RECORDS SHOW A BALANCE OF $12,326. INFORMATION THAT MIGHT BE USEFUL IN PREPARING A BANK RECONCILIATION IS AS FOLLOWS: A. OUTSTANDING CHECKS ARE $1,225. B. THE OCTOBER 31 CASH RECEIPTS OF $780 ARE NOT DEPOSITED IN THE BANK UNTIL NOVEMBER 2. C. ONE CHECK WRITTEN IN PAYMENT OF UTILITIES FOR $136 IS CORRECTLY RECORDED BY THE BANK BUT IS RECORDED BY BLOCKWOOD AS DISBURSEMENT OF $163. D. IN ACCORDANCE WITH PRIOR AUTHORIZATION, THE BANK WITHDRAWS $449 DIRECTLY FROM THE CHECKING ACCOUNT AS PAYMENT ON A NOTE PAYABLE. THE INTEREST PORTION OF THAT PAYMENT IS $49 AND THE PRINCIPAL PORTION IS $400. BLOCKWOOD HAS NOT RECORDED THE DIRECT WITHDRAWAL. E. BANK SERVICE FEES OF $23 ARE LISTED ON THE BANK STATEMENT. F. A DEPOSIT OF $566 IS RECORDED BY THE BANK ON OCTOBER 13, BUT IT DID NOT BELONG TO BLOCKWOOD. THE DEPOSIT SHOULD HAVE BEEN MADE TO THE CHECKING ACCOUNT…
Using the following information, prepare the journal entries to reconcile the bank statement. Bank balance: $6,988 • Book balance: $8,866 • Deposits in transit: $1,832 Outstanding checks: $589 and $1,623 • Bank service charges: $50 • Bank incorrectly charged the account $50. The bank will correct the error next month. • Check number 2456 correctly cleared the bank in the amount of $417 but posted in the accounting records as $471. This check was expensed to Utilities Expense. If an amount box does not require an entry, leave it blank.
Please prepare a bank reconciliation and journal entries for the month ended April 30th for Bannon Co. 1) Balance per bank statement $ 9,915 2) Balance per cash general ledger account (books) $ 8,954 3) April 30th deposit of $ 2,600 is not on the bank statement (Deposit in Transit) 4) Check numbers #219 for $ 1000 and # 222 for $ 1,100 written in April do not appear on the April bank statement (Outstanding Checks) 5) Debit memo for a $ 20 service charge appeared on the bank statement 6) The bank incorrectly deducted $ 400 from Bannon's checking account 7) The bank collected a note on behalf of the company in April, a credit memo for net proceeds of $ 2,000 included the principal of $1,900, interest of $ 150, less a collection fee of $ 50 accompanied the bank statement 8) A check from Apple Co. for $ 150 was returned by the bank marked NSF 9) The bank added $40 of interest earned directly to the checking account balance 10) A Cash Sale in the amount of $ 297 was erroneously journalvized…
I'm a little confused how to prep the bank reconciliation and the journal entrys.
Oscar Myer receives the March bank statement for Jam Enterprises on April 11, 2018. The March 31 bank statement shows an ending cash balance of $67,566. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. O. Myer notices that the bank erroneously cleared a $500 check against his account in March that he did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Jam Systems. On March 25, the bank lists a $50 charge for the safety deposit box expense that Jam Enterprises agreed to rent from the bank beginning March 25. On March 26, the bank lists a $102 charge for printed checks that Jam Enterprises ordered from the bank. On March 31, the bank lists $33 interest earned on Jam Enterprises' checking account for the month of March. O. Myer notices that the check he issued for $128 on March 31, 2018, has not yet cleared the bank. O. Myer verifies that all deposits…
Please help me fill out this bank reconciliation showing the true cash balance.