Wright Company deposits all cash receipts on the day when they are received and
ID: 2445379 • Letter: W
Question
Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, 2013, its Cash account shows a $28,900 debit balance. The company’s May 31 bank statement shows $27,200 on deposit in the bank.
The May 31 bank statement included a $170 debit memorandum for bank services; the company has not yet recorded the cost of these services.
May 31 cash receipts of $6,900 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 $470 check written by Smith Company was mistakenly drawn against Wright’s account.
A debit memorandum for $460 refers to a $460 NSF check from a customer; the company has not yet recorded this NSF check.
Prepare a bank reconciliation for the company using the above information.
Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, 2013, its Cash account shows a $28,900 debit balance. The company’s May 31 bank statement shows $27,200 on deposit in the bank.
Explanation / Answer
BRS
Balance as per cash Book
28900
Add: Checks outstanding
6300
35200
Deduct: NSF check
460
Deduct: A $470 check written by Smith
470
Deduct: Cash receipts of $6,900 not recorded by Bank
6900
Deduct: Bank service charges
170
Balance as per bank statement
$27,200
Balance as per cash Book
28900
Add: Checks outstanding
6300
35200
Deduct: NSF check
460
Deduct: A $470 check written by Smith
470
Deduct: Cash receipts of $6,900 not recorded by Bank
6900
Deduct: Bank service charges
170
Balance as per bank statement
$27,200
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