On May 31, 2015, Reber Company had a cash balance per books of $7,096.50. The ba

Question

On May 31, 2015, Reber Company had a cash balance per books of $7,096.50. The bank statement from New York State Bank on that date showed a balance of $6,719.60. 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 $733.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $783.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $891.25. Deposits in transit were $2,731.15. 4. On May 18, the company issued check no. 1181 for $685 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $658. 5. A $3,315.00 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 $1,115.00 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.

Prepare the bank reconciliation at May 31, 2015. and Prepare the necessary adjusting entries for Reber Company at May 31, 2015.

Explanation / Answer

Reber Company Bank Reconcilitaion Statement May 31.2015 Details Amt $ Balance as per Bank Statement on May 31.2015.         6,719.60 Add: Debit For Check Stationery not in Cash GL               47.00 Add: Entry Mistake fr deposit in Cash GL               50.00 Less : Outstanding Check May 31.             891.25 Add: Deposit in Transit         2,731.15 Add: Check issue entry mistake in Cash GL               27.00 Less Note Collected not in Cash GL         3,315.00 Less Interest on Note not in Cash GL               87.00 Add : Collection fee debited not in Cash GL               27.00 Add: Incorrect Check cancelleation by bank         1,115.00 Add : NSF not in Cash GL             673.00 Net Balance in Casg GL on May 31.2015.         7,096.50 Correcting Entries in Cash GL Account Title Dr $ Cr $ Bank Charges               47.00 Cash                47 Cash                50 Sales Revenue               50.00 Cash                  27 Accounts Payable               27.00 Note Receivable          3,315 Interest Income                87 Cash         3,402.00 Bank Charges               27.00 Cash                27 Accounts Receivable                   673 Cash              673

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