SHAWNEE STATE BANK Checks and Debits Deposits and Credits Daily Balance Prepare
ID: 2459701 • Letter: S
Question
SHAWNEE STATE BANK
Checks and Debits
Deposits and Credits
Daily Balance
Prepare the bank reconciliation at May 31, 2014.
Prepare the necessary adjusting entries for Zimmerman Company at May 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
The bank statement from Shawnee State Bank on that date showed the following balance.
SHAWNEE STATE BANK
Checks and Debits
Deposits and Credits
Daily Balance
XXX XXX 5-31 7,094.00A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.
1. The statement included a debit memo of $56.00 for the printing of additional company checks. 2. Cash sales of $899.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $949.15. The bank credited Zimmerman Company for the correct amount. 3. Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,896.15. 4. On May 18, the company issued check No. 1181 for $685 to M. Hartley, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Zimmerman Company for $658. 5. A $2,726.00 note receivable was collected by the bank for Zimmerman Company on May 31 plus $126.00 interest. The bank charged a collection fee of $20.00. No interest has been accrued on the note. 6. Included with the canceled checks was a check issued by Zinderberg Company to P. Conard for $344.00 that was incorrectly charged to Zimmerman Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $506.00 for a check issued by Bev Sullivan, a customer, to Zimmerman Company on account.
Explanation / Answer
Bank Reconcialtion statement Balance as per Bank Statement 7094 Add: Debit memo for the printing of additional company cheques 56 Cash Sales incorrectly recorded in the cash book 50 Deposits in transit 1896.15 Issued cheques were incorrectly recorded in Cash Books 27 Bank charges for collection 20 Incorrect charging of issued cheques 344 NSF Charge 506 2899.15 Less: Outstanding Cheques 276.25 Note recievable collected by bank 2726 Interest on note recievable 126 3128.25 Balance as per Cash book 6864.90
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