The cash account of the Malpractice Medical Company at May 31, 2019 is $35,670. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the cancelled checks and the accompanying memos with the records revealed the following reconciling items:Checks outstanding totaled $6,440A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement.The bank collected for Malpractice Medical $5,250 on a note left for collection. The face amount of the note was $5,000A check for $390 returned with the statement had been incorrectly charged by the bank as $930A check for #210 returned with the bank statement had been incorrectly recorded by Malpractice Medical as $120. The check was for the payment of an obligation to XYZ Company on accountBank service charges for May amounted to $30A check for $1,325 from DEF Company was returned by the bank due to insufficient fundsRequired:Prepare a bank reconciliation as of May 31, 2019Journalize the necessary adjusting entries

Bank reconciliation statement is prepared by almost every organization at a particular time. It is a…

Answered: The cash account of the Malpractice…

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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The cash account of the Malpractice Medical Company at May 31, 2019 is $35,670. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the cancelled checks and the accompanying memos with the records revealed the following reconciling items:

Checks outstanding totaled $6,440
A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement.
The bank collected for Malpractice Medical $5,250 on a note left for collection. The face amount of the note was $5,000
A check for $390 returned with the statement had been incorrectly charged by the bank as $930
A check for #210 returned with the bank statement had been incorrectly recorded by Malpractice Medical as $120. The check was for the payment of an obligation to XYZ Company on account
Bank service charges for May amounted to $30
A check for $1,325 from DEF Company was returned by the bank due to insufficient funds

Required:

Prepare a bank reconciliation as of May 31, 2019

Journalize the necessary adjusting entries

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