The image contains a section of a financial worksheet related to journalizing transactions. Below is the transcription suitable for an educational website.---**Total adjustments** (Text field for input)**Adjusted balance** $ (Text field for input)b. Journalize the necessary entries. Record the entry to increase cash first. If an amount box does not require an entry, leave it blank.- **May 31** - Dropdown menu - Three empty fields for amounts or accounts- **31** - Dropdown menu - Three empty fields for amounts or accountsEach row reflects a journal entry where users can select accounts and input amounts corresponding to transactions. The dropdown menu indicates options for selecting the appropriate account name, and the fields beside it are for entering the debit or credit amounts, ensuring that entries align with accounting principles. --- This setup allows students or financial professionals to practice recording financial transactions systematically. The text discusses a bank reconciliation for Santiago Co. as of May 31. The cash account indicates a balance of $20,915, while the May bank statement shows an ending balance of $25,645. The reconciliation process involves identifying differences between the bank statement and the company's records, highlighted by the following reconciling items:a. Outstanding checks totaling $5,975.b. A deposit of $3,796 was recorded too late to appear on the bank statement.c. A check for $1,482 was mistakenly recorded by the company as $482; it was intended for a payee account.d. The bank collected $4,515 on a note, including $515 as interest revenue.e. Bank service charges for May amounted to $70.f. A check for $894 was returned by the bank due to insufficient funds.The bank reconciliation is prepared accordingly:**Santiago Co. Bank Reconciliation May 31**- **Cash balance according to bank statement:** - \ Adjustments: - \ Blank space for listing - \ Total adjustments subtracted- **Adjusted balance:** - \ Calculated balance- **Cash balance according to company's records:** - \ Adjustments: - \ Blank space for listing - \ Total adjustments added- **Adjusted balance:** - \ Calculated balanceThe reconciliation form is structured to adjust both the bank and book balances by accounting for all the differences identified through the reconciling items.

Bank reconciliation statement: It is prepared to reconcile the financial records of the company with…

The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The May bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $5,975. a. b. A deposit of $3,796 had been made too late to appear on the bank statement. A check for $1,482 returned with the statement had been incorrectly recorded by the company as $482. The check was originally issued to pay on account. d. The bank collected $4,515 on a note left for collection of which $515 was interest revenue. Bank service charges for May amounted to $70. e. check for $894 was returned by the bank because of insufficient funds. a. Prepare a bank reconciliation as of May 31

The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The May bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $5,975. a. b. A deposit of $3,796 had been made too late to appear on the bank statement. A check for $1,482 returned with the statement had been incorrectly recorded by the company as $482. The check was originally issued to pay on account. d. The bank collected $4,515 on a note left for collection of which $515 was interest revenue. Bank service charges for May amounted to $70. e. check for $894 was returned by the bank because of insufficient funds. a. Prepare a bank reconciliation as of May 31

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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