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: The statement include a debit memo of $40 for the printing of additional company checks. Cash sales of $836on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were ly made for $886.15. The bank credited Reber Company for the correct amount. Outstanding checks totaled $576.25. Deposits in transit were $2416.15. 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 ly journalized and posted by Reber Company for $658. A $3000 note receivable was collected by bank for Reber company on May 31, plus $80 interest. The bank charged a collection fee $20. Included with the cancelled checks was a check issued by Stiner company to Ted Chris for $800 that was ly charged to Reber Company by the bank. 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: Prepare a bank reconciliation Journalize the adjusting entries

Explanation / Answer

Bank reconciliation Cash balance as per books 6781.50 Less Bank charges for printing 40.00 Incorrect recording of deposit slip 50.15 deposit in transit 2416.15 Incorrect recording of cheque issued 27.00 Collection fee 20.00 Incorrect recording by bank 800.00 NSF Check 680.00 4033.30 Add : outstanding checks 576.25 Note recievable collected 3000.00 Interest collected 80.00 3656.25 Cash balance as per bank 6404.45

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