18The May 31 balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to$1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and adebit memo for direct payment of the telephone bill of $350.Required:a.Prepare a bank reconciliation to determine the true cash balance at May 31.b. Indicate how each of the required adjusting entries impact the financial statements.Complete this question by entering your answers in the tabs below.Required 1Required 2Indicate how each of the required adjusting entries impact the financial statements.Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.Outstanding checksHorizontal Statements ModelBalance SheetIncome StatementItemAssetsLiabilitiesCashAccountsReceivablesStockholders'EquityRevenueExpensesNetIncomeStatement ofCash Flows(1.700)4.800Deposits in transeNSF check from a customer

A bank reconciliation statement is a summary of banking and business activity that reconciles an…

The May 31 balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a debit memo for direct payment of the telephone bill of $350. Required: a. Prepare a bank reconciliation to determine the true cash balance at May 31 b. Indicate how each of the required adjusting entries impact the financial statements.

The May 31 balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a debit memo for direct payment of the telephone bill of $350. Required: a. Prepare a bank reconciliation to determine the true cash balance at May 31 b. Indicate how each of the required adjusting entries impact the financial statements.

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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