exercise: On May 31 Reber company had a cash balance per books of $6781.5.The ba
ID: 2469673 • Letter: E
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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 entriesrcises 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 entriesrcises 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 entriesrcisesExplanation / Answer
Reber Company Bank Reconciliation Statement As on May 31. Details Amt $ Balance as per Bank statement-May 31. 6,404.60 1 Add : Debit for printing not in Cash GL 40.00 2 Add: Cash entry mistake in Cash GL 50.15 3 Less : Outstanding Checks (576.25) 3 Add: Deposit in Transit 2,416.15 4 Add : Check entry error in Cash GL -Chq no 1181 27.00 5 Less: Note receivable +interest not in Cash GL= (3,080.00) 5 Add: Bank collection fee not in Cash GL= 20.00 6 Add : Check wongly debited by Bank 800.00 7 Add: NSF not is Cash GL-Sue Allission 680.00 Balance as per Cash Book 6,781.65 ( * There is $0.15 difference that needs recheck for any typo) Journal Entry Account Title Dr $ Cr $ 1 Bank Charge 40.00 Cash 40 2 Cash 50.15 Accounts Receivable 50.15 4 Cash 27.00 Accounts Payable 27.00 5 Cash 3,000.00 Note Receivable 3,000.00 Cash 80.00 Interest Revenue 80.00 Bank Charge 20.00 Cash 20.00 7 Cash 680.00 Accounts Receivable 680.00
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