Hello,How do I solve this?Thanks The bookkeeper for Crane Manufacturing Ltd. was trying to determine what items would be used in preparing the company's bankreconciliation that she is completing at May 31, 2021, the end of the company's first month of operations. The company's bankstatement showed the following:DateMay 135DepositCheque, No. 001Cheque, No. 002DepositCheque, No. 00421 Cheque, No. 00615192 2 22525 Returned cheque-NSF. S. GillisNSF fee27 Cheque, No. 00928 Cheque, No. 01031DescriptionDateMay 1CRANE MANUFACTURING LTD.Bank StatementMay 311531Bank service chargesCash ReceiptsAmount$31.5005,859$47,203AmountsDeducted fromAccount (Debits)DateMay 231415Crane's summary of cash receipts (which were all deposited) and summary of cheques (which were all mailed out to suppliers) for themonth of May showed the following:18192223252,0328,9932610,4491,2561,7012,6892,4735543Cash PaymentsNumber001002003004005006007008009Amounts Addedto Account(Credits)010Amount$2,0328,9932,12231.50010,4494491,2562,6936732,6892,473$33,8295.859Balance31,50029,46820,47526,33415,88514,62912,92812,88510.1967,7237,668 Review Crane's cash receipts summary and determine the amount of any deposits not recorded by the bank. These will bedeposits in transit. (Hint: It can be useful to check off or cross out the deposits that appear on both the bank statement and thecash receipts summary because these will not be deposits in transit.)Deposit in transit of May 31$

Answered: Review Crane's cash receipts summary…

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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Hello,

How do I solve this?

Thanks

The bookkeeper for Crane Manufacturing Ltd. was trying to determine what items would be used in preparing the company's bank
reconciliation that she is completing at May 31, 2021, the end of the company's first month of operations. The company's bank
statement showed the following:
Date
May 1
3
5
Deposit
Cheque, No. 001
Cheque, No. 002
Deposit
Cheque, No. 004
21 Cheque, No. 006
15
19
2 2 2
25
25 Returned cheque-NSF. S. Gillis
NSF fee
27 Cheque, No. 009
28 Cheque, No. 010
31
Description
Date
May 1
CRANE MANUFACTURING LTD.
Bank Statement
May 31
15
31
Bank service charges
Cash Receipts
Amount
$31.500
5,859
$47,203
Amounts
Deducted from
Account (Debits)
Date
May 2
3
14
15
Crane's summary of cash receipts (which were all deposited) and summary of cheques (which were all mailed out to suppliers) for the
month of May showed the following:
18
19
22
23
25
2,032
8,993
26
10,449
1,256
1,701
2,689
2,473
55
43
Cash Payments
Number
001
002
003
004
005
006
007
008
009
Amounts Added
to Account
(Credits)
010
Amount
$2,032
8,993
2,122
31.500
10,449
449
1,256
2,693
673
2,689
2,473
$33,829
5.859
Balance
31,500
29,468
20,475
26,334
15,885
14,629
12,928
12,885
10.196
7,723
7,668

Review Crane's cash receipts summary and determine the amount of any deposits not recorded by the bank. These will be
deposits in transit. (Hint: It can be useful to check off or cross out the deposits that appear on both the bank statement and the
cash receipts summary because these will not be deposits in transit.)
Deposit in transit of May 31
$

Expert Solution

Step 1

Bank reconciliation: It implies to a process of matching the bank balance appearing as per bank's book with the balance as per the cash book of the company. It highlights the differences between both the statements as per cash book and passbook.

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Review Crane's cheque summary and determine the amount of any cheques that have not yet cleared the company's bank
account. These will be outstanding cheques. (Hint: It can be useful to check off or cross out the cheques that appear on both the
bank statement and the cheque summary because these will not be outstanding cheques.)
Outstanding Cheques:
GA
tA

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