Third exercise: On May 31 Reber company had a cash balance per books of $6781.5.

Question

Third exercise: On May 31 Reber company had a cash balance per books of $6781.5.The bank statement from NY state bank on that date showed a balance of $ 6404.60. A comparison of the statement with the cash account revealed the following facts: 1. The statement include a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $836on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks totaled $576.25. Deposits in transit were $2416.15. 4. On May 18, the company issued check number 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 $3000 note receivable was collected by bank for Reber company on May 31 , plus $80 interest . The bank charged a collection fee $20. 6. Included with the cancelled checks was a check issued by Stiner company to Ted Chris for $800 that was incorrectly charged to Reber Company by the bank . 7. On May 31 , the bank statement showed an NSF charge of $680 for a check issued by Sue Allisson , a customer , to Reber company on account Required: a.Prepare a bank reconciliation b.Journalize the adjusting entries Third exercise: On May 31 Reber company had a cash balance per books of $6781.5.The bank statement from NY state bank on that date showed a balance of $ 6404.60. A comparison of the statement with the cash account revealed the following facts: 1. The statement include a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $836on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks totaled $576.25. Deposits in transit were $2416.15. 4. On May 18, the company issued check number 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 $3000 note receivable was collected by bank for Reber company on May 31 , plus $80 interest . The bank charged a collection fee $20. 6. Included with the cancelled checks was a check issued by Stiner company to Ted Chris for $800 that was incorrectly charged to Reber Company by the bank . 7. On May 31 , the bank statement showed an NSF charge of $680 for a check issued by Sue Allisson , a customer , to Reber company on account Required: a.Prepare a bank reconciliation b.Journalize the adjusting entries Third exercise: On May 31 Reber company had a cash balance per books of $6781.5.The bank statement from NY state bank on that date showed a balance of $ 6404.60. A comparison of the statement with the cash account revealed the following facts: 1. The statement include a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $836on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks totaled $576.25. Deposits in transit were $2416.15. 4. On May 18, the company issued check number 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 $3000 note receivable was collected by bank for Reber company on May 31 , plus $80 interest . The bank charged a collection fee $20. 6. Included with the cancelled checks was a check issued by Stiner company to Ted Chris for $800 that was incorrectly charged to Reber Company by the bank . 7. On May 31 , the bank statement showed an NSF charge of $680 for a check issued by Sue Allisson , a customer , to Reber company on account Required: a.Prepare a bank reconciliation b.Journalize the adjusting entries

Explanation / Answer

Reber Company All Amounts in $ a. Bank Reconciliation Statement as on May 31 Bank Balance as per Cash Book 6781.5 Add : Cheques issued but not presented 576.25 Add : Note receivable collected plus interest 3080 Add : Cheque wrongly debited to Reber 0 3656.25 10437.75 Less : Cheque Printing Charges 40 Less : Amount excess debited in books 50 Less : Deposits in Transit 2416.15 Less : Cheque 1181 short debited by Reber 27 Less : Cheque wrongly debited to Reber 800 Less : Charge on Note Receivable 20 Less : NSF Charge on Check 680 4033.15 Balance per Bank Statement 6404.6 b. Journal Entries for Adjustments made Bank A/c 3060 Bank Charges A/c 20 To Note A/c 3000 To Interest on Note A/c 80 Printing Charges A/c 40 To Bank A/c 40 Cash Sales A/c 50 To Bank A/c 50 Lynda Carson A/c 27 To Bank A/c 27 Bank Charges A/c 800 To Bank A/c 800 Sue Allison A/c 680 To Bank A/c 680

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