PA5-2 Preparing a Bank Reconclliation and Journal Entries and Reporting Cash LO
ID: 1159457 • Letter: P
Question
PA5-2 Preparing a Bank Reconclliation and Journal Entries and Reporting Cash LO 5-4, LO 5-5 The following imformation opplies to the questions displayed below The bookkeeper at Martin Compeny has osked you to prepare a bank reconcillation es of May 31 The May 31 bank statement and the May T-account for cash (summorized). Marin Company's bank reconciliation at the end of Aprs showed a cosh balence of $18,800 Na deposits were in transit ot the end of Apeil, bun a deposit was in transit at the end of May BANK STATEMENT ChecksDeposits Ocher Balance, May t Moy 2 May 5 May 7 May 8 Mey 14 $ 18.800 26.800 15.800 9.800 9.800 $ 8,000 2301 5 11000 #302 6.000 10000 #303 í 500i $ 120 19420 280 19140 Interess May 22 May 27 Mey 31 Bolance. May 31 #304 14600 Service chaige80 14480 14 480 MeyBalance B aco sdlooo6.00 #302 May 4 elope sdo 4a00Explanation / Answer
Bank Reconciliation Statement Bank Statement balance as per bank statement 14480 Balance as per Books 19400 Additions Additions: Deposits in transit 6000 Interest allowed 120 20480 19520 Less: Less: Outstanding checks 1300 NSF check 280 Servvice charges 60 Adjusted balance as per bank Statement 19180 19180 Journal entries: Cash account Dr. 120 Interest revenue Account 120 Accounts receivable Account Dr. 280 Cash Account 280 Misc. expense Account Dr. 60 Cash account 60
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