REBER COMPANY Bank Reconciliation May 31, 2014 No. Account Titles and Explanatio
ID: 2447741 • Letter: R
Question
REBER COMPANY
Bank Reconciliation
May 31, 2014
No.
Account Titles and Explanation
Debit
Credit
(To record note receivable.)
(To record NSF check.)
(To record error in deposit.)
(To record error on check.)
(To record check printing charge.)
On May 31, 2014, Reber Company had a cash balance per books of $7,023.50. The bank statement from New York State Bank on that date showed a balance of $6,646.60. A comparison of the statement with the cash account revealed the following facts.1. The statement included a debit memo of $47.00 for the printing of additional company checks. 2. Cash sales of $631.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $681.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $854.25. Deposits in transit were $2,658.15. 4. On May 18, the company issued check No. 1181 for $692 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $629. 5. A $3,242.00 note receivable was collected by the bank for Reber Company on May 31 plus $87.00 interest. The bank charged a collection fee of $27.00. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Stiner Company to Ted Cress for $1,042.00 that was incorrectly charged to Reber Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $673.00 for a check issued by Sue Allison, a customer, to Reber Company on account.
Explanation / Answer
REBER COMPANY
Bank Reconciliation
May. 31, 2014
Cash balance per books
$ 7,023.50
Adjustments:
Less: Check Printing Charges
$ (47.00)
Less: Error on Deposit (681-631)
$ (50.00)
Less: Error in Check (692-629)
$ (63.00)
Add: Note receivables Collection (3242 +87-27)
$ 3,302.00
Less: NSF Check
$ (673.00)
Adjusted Cash balance
$ 9,492.50
Less: Bank Error
$ (1,042.00)
Add: Outstanding checks
$ 854.25
Less: Deposits in transit
$ (2,658.15)
Cash Balance per bank
$ 6,646.60
Adjusting entries:
No.
Account Titles and Explanation
Debit
Credit
1
Cash
$ 3,302.00
Bank Service Charge
$ 27.00
Notes Receivables
$ 3,242.00
Interest Revenue
$ 87.00
(To record note receivable.)
2
Accounts Receivables
$ 673.00
Cash
$ 673.00
(To record NSF check.)
3
Sales
$ 50.00
Cash
$ 50.00
(To record error in deposit.)
4
Accounts Payable - Lynda Carsen
$ 63.00
Cash
$ 63.00
(To record error on check.)
5
Banks Service Charges
$ 47.00
Cash
$ 47.00
(To record check printing charge.)
REBER COMPANY
Bank Reconciliation
May. 31, 2014
Cash balance per books
$ 7,023.50
Adjustments:
Less: Check Printing Charges
$ (47.00)
Less: Error on Deposit (681-631)
$ (50.00)
Less: Error in Check (692-629)
$ (63.00)
Add: Note receivables Collection (3242 +87-27)
$ 3,302.00
Less: NSF Check
$ (673.00)
Adjusted Cash balance
$ 9,492.50
Less: Bank Error
$ (1,042.00)
Add: Outstanding checks
$ 854.25
Less: Deposits in transit
$ (2,658.15)
Cash Balance per bank
$ 6,646.60
Adjusting entries:
No.
Account Titles and Explanation
Debit
Credit
1
Cash
$ 3,302.00
Bank Service Charge
$ 27.00
Notes Receivables
$ 3,242.00
Interest Revenue
$ 87.00
(To record note receivable.)
2
Accounts Receivables
$ 673.00
Cash
$ 673.00
(To record NSF check.)
3
Sales
$ 50.00
Cash
$ 50.00
(To record error in deposit.)
4
Accounts Payable - Lynda Carsen
$ 63.00
Cash
$ 63.00
(To record error on check.)
5
Banks Service Charges
$ 47.00
Cash
$ 47.00
(To record check printing charge.)
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