Consider the following facts for Company A: - Cash account balance per the gener

Question

Consider the following facts for Company A: - Cash account balance per the general ledger at May 31 = $13,287. - Cash account balance per the bank statement at May 31 = $14,157. - The bank statement included a debit memo of $35 for check printing charges. - Cash sales of $1,720 on May 12 were deposited in the bank. The deposit was incorrectly recorded in Company A books for $1,820. The bank credited the cash account for the correct amount. - At May 31, outstanding checks totaled $1,225. - At May 31, deposits in transit totaled $2,100. - On May 18, Company A issued check #1181 for $191 to Company B for payment on account. The check cleared the bank in May, but was incorrectly recorded by Company A on its books for $119. - A $4,000 not receivable was collected by the bank for Company A on May 31 plus interest of $80. The bank charged a collection fee of $20. No interest had been accrued by Company A for the note. - In the cancelled checks received with the bank statement, there was check for $800 issued by another company and incorrectly charged to Company A by the bank. - On May 31, the bank statement showed an NSF charge of $1,308 for a check issued by a customer to Company A as payment on account. Company A's bank reconciliation for May 31, 2014 should show an adjusted Cash account balance of $_.

Explanation / Answer

Company A's bank reconciliation for May 31, 2014

Adjusted cash account balance is $870

BANK RECONCILIATION CASH ACCOUNT BALANCE AS PER GENERAL LEDGER $13,287 less withdrawal by bank but not show in company ledger debit memo $35 cash sales bank deposit $1720 but company ledger $1820 $100 31 may, deposits intransit deposited by company ledger $2,100 company A issue cheque 1181 for $191 but incorrect record $119 $72 bank statement show an NSF charge of $ 1308 $1,308 cancelled cheque $800 collection charges $20 $4,435 add outstanding cheque on 31 may $1,225 collection received by bank $4,080 $5,305 CASH ACCOUNT BALANCE AS PER BANK STATEMENT $14,157

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