The May 31 balance per bank statement was $18,000. The cash balance per books was $22,250. Outstanding checks amounted to $2,700, and deposits in transit were $5,400. The bank statement contained an NSF check for $1,100, a service charge for $40, and a debit memo for direct payment of the telephone bill of $410. 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 1 Required 2 Indicate how each of the required adjusting entries impact the financial statements. Note: Leave cells blank if no input is needed. Enter any decreases to account balances and cash outflows with a minus sign. Outstanding checks Deposits in transit Item NSF check from a customer Bank service charge Debit memo for payment of telephone bill Cash Assets Balance Sheet Accounts Receivables Liabilities Stockholders' Equity < Required 1 Revenue Income Statement - Required 2 > Expenses = - Net Income Statement of Cash Flows

The May 31 balance per bank statement was $18,000. The cash balance per books was $22,250. Outstanding checks amounted to $2,700, and deposits in transit were $5,400. The bank statement contained an NSF check for $1,100, a service charge for $40, and a debit memo for direct payment of the telephone bill of $410. 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 1 Required 2 Indicate how each of the required adjusting entries impact the financial statements. Note: Leave cells blank if no input is needed. Enter any decreases to account balances and cash outflows with a minus sign. Outstanding checks Deposits in transit Item NSF check from a customer Bank service charge Debit memo for payment of telephone bill Cash Assets Balance Sheet Accounts Receivables Liabilities Stockholders' Equity < Required 1 Revenue Income Statement - Required 2 > Expenses = - Net Income Statement of Cash Flows

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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