Sandhill Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company’s Cash account per its general ledger showed a balance of $6,833.90. The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 7,063.00 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $59.00 for the printing of additional company checks. 2. Cash sales of $902.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $952.15. The bank credited Sandhill Co. for the correct amount. 3. Outstanding checks at May 31 totaled $285.25, and deposits in transit were $1,899.15. 4. On May 18, the company issued check No. 1181 for $684.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sandhill Co. for $648.00. 5. $2,804.00 was collected from a customer note receivable by the bank for Sandhill Co. on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $341.00 that was incorrectly charged to Sandhill Co. by the bank. 7. On May 31, the bank statement showed an NSF charge of $475.00 for a check issued by Sara Ballard, a customer, to Sandhill Co. on account. Prepare the bank reconciliation at May 31, 2022. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 5,275. 50.)

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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Sandhill Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company’s Cash account per its general ledger showed a balance of $6,833.90.

The bank statement from Emporia State Bank on that date showed the following balance.

EMPORIA STATE BANK
Checks and Debits		Deposits and Credits		Daily Balance
XXX		XXX		5-31 7,063.00

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

1.		The statement included a debit memo of $59.00 for the printing of additional company checks.
2.		Cash sales of $902.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $952.15. The bank credited Sandhill Co. for the correct amount.
3.		Outstanding checks at May 31 totaled $285.25, and deposits in transit were $1,899.15.
4.		On May 18, the company issued check No. 1181 for $684.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sandhill Co. for $648.00.
5.		$2,804.00 was collected from a customer note receivable by the bank for Sandhill Co. on May 31 through electronic funds transfer.
6.		Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $341.00 that was incorrectly charged to Sandhill Co. by the bank.
7.		On May 31, the bank statement showed an NSF charge of $475.00 for a check issued by Sara Ballard, a customer, to Sandhill Co. on account.

Prepare the bank reconciliation at May 31, 2022. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 5,275. 50.)

Prepare the necessary adjusting entries for Sandhill Co. at May 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275. 50.)

Date	Account Titles and Explanation	Debit	Credit
May 31	enter an account title to record collection of note receivable by bank	enter a debit amount	enter a credit amount
	enter an account title to record collection of note receivable by bank	enter a debit amount	enter a credit amount
	(To record collection of note receivable by bank)
31	enter an account title to record NSF check	enter a debit amount	enter a credit amount
	enter an account title to record NSF check	enter a debit amount	enter a credit amount
	(To record NSF check)
31	enter an account title to correct error in deposit	enter a debit amount	enter a credit amount
	enter an account title to correct error in deposit	enter a debit amount	enter a credit amount
	(To correct error in deposit)
31	enter an account title to correct error in recording check	enter a debit amount	enter a credit amount
	enter an account title to correct error in recording check	enter a debit amount	enter a credit amount
	(To correct error in recording check)
31	enter an account title to record charge for printing company checks	enter a debit amount	enter a credit amount
	enter an account title to record charge for printing company checks	enter a debit amount	enter a credit amount
	(To record charge for printing company checks)

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