Wright Company's cash account shows a $28,100 debit balance and its bank statement shows $26,400 on deposit at the close of business on May 31. The May 31 bank statement lists $130 in bank service charges; the company has not yet recorded the cost of these services. Outstanding checks as of May 31 total $5,900. May 31 cash receipts of $6,500 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. In reviewing the bank statement, a $430 check written by Smith Company was mistakenly drawn against Wright’s account. The bank statement shows a $540 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information.
Wright Company's cash account shows a $28,100 debit balance and its bank statement shows $26,400 on deposit at the close of business on May 31. The May 31 bank statement lists $130 in bank service charges; the company has not yet recorded the cost of these services. Outstanding checks as of May 31 total $5,900. May 31 cash receipts of $6,500 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. In reviewing the bank statement, a $430 check written by Smith Company was mistakenly drawn against Wright’s account. The bank statement shows a $540 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Wright Company's cash account shows a $28,100 debit balance and its bank statement shows $26,400 on deposit at the close of business on May 31.
- The May 31 bank statement lists $130 in bank service charges; the company has not yet recorded the cost of these services.
- Outstanding checks as of May 31 total $5,900.
- May 31 cash receipts of $6,500 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement.
- In reviewing the bank statement, a $430 check written by Smith Company was mistakenly drawn against Wright’s account.
- The bank statement shows a $540 NSF check from a customer; the company has not yet recorded this NSF check.
Prepare its bank reconciliation using the above information.
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