Wright Company's cash account shows a $30,900 debit balance and Its bank statement shows $29,200 on deposit at the close of business on May 31. a. The May 31 bank statement lists $270 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $7,300. c. May 31 cash recelpts of $7,900 were placed In the bank's night depository after banking hours and were not recorded on the May 31 bank statement. d. In revlewing the bank statement, a $570 check written by Smith Company was mistakenly drawn agalnst Wright's account. e. The bank statement shows a $260 NSF check from a customer, the company has not yet recorded this NSF check. Prepare Its bank reconcilation using the above Information. WRIGHT COMPANY Bank Reconciliation May 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance olo
Wright Company's cash account shows a $30,900 debit balance and Its bank statement shows $29,200 on deposit at the close of business on May 31. a. The May 31 bank statement lists $270 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $7,300. c. May 31 cash recelpts of $7,900 were placed In the bank's night depository after banking hours and were not recorded on the May 31 bank statement. d. In revlewing the bank statement, a $570 check written by Smith Company was mistakenly drawn agalnst Wright's account. e. The bank statement shows a $260 NSF check from a customer, the company has not yet recorded this NSF check. Prepare Its bank reconcilation using the above Information. WRIGHT COMPANY Bank Reconciliation May 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance olo
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need help with this question
Transcribed Image Text:**Bank Reconciliation for Wright Company on May 31**
Wright Company's cash account shows a $30,900 debit balance, while its bank statement shows $29,200 on deposit at the close of business on May 31. The following reconciling items are identified:
a. The May 31 bank statement lists $270 in bank service charges that the company has not yet recorded.
b. Outstanding checks as of May 31 total $7,300.
c. May 31 cash receipts of $7,900 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement.
d. During the review of the bank statement, a $570 check written by Smith Company was mistakenly drawn against Wright’s account.
e. The bank statement shows a $260 NSF check from a customer that has not yet been recorded by the company.
### Bank Reconciliation Format
To reconcile Wright Company's bank and book balances, use the following format:
**WRIGHT COMPANY**
**Bank Reconciliation**
**May 31**
| | Bank Statement Balance | Book Balance |
|--------------------------|------------------------|--------------------|
| **Balance** | | |
| | | |
| **Add:** | | |
| - Deposits in transit | (+) $7,900 | |
| - Mistaken check | (+) $570 | |
| | | |
| **Less:** | | |
| - Outstanding checks | (-) $7,300 | |
| | | |
| **Adjusted Bank Balance**| $0 | |
| | | |
| **Add:** | | |
| - Unrecorded receipts | | |
| | | |
| **Less:** | | |
| - Bank service charges | | (-) $270 |
| - NSF check | | (-) $260 |
| | | |
| **Adjusted Book Balance**| | $0 |
### Detailed Explanation of Adjustments:
#### Adjustments to the Bank Statement Balance:
1. **Deposits in Transit (+$7,900):** These are cash receipts taken to the bank's night depository but not yet recorded on the bank statement.
2. **Mistaken
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education