The following data were accumulated for use in reconciling the bank account of Z

Question

The following data were accumulated for use in reconciling the bank account of Zek’s Co. for May 2016:

Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

Journal

Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

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1. Cash balance according to the company’s records at May 31, 2016, $24,556. 2. Cash balance according to the bank statement at May 31, 2016, $31,856. 3. Checks outstanding, $13,280. 4. Deposit in transit, not recorded by bank, $6,392. 5. A check for $48 in payment of an account was erroneously recorded in the check register as $480. 6. Bank debit memo for service charges, $20.

Explanation / Answer

Bank Reconciliation statement of Zek's Co for May 2016 Particulars Amount ( $ ) Cash balance according to the company’s records at May 31, 2016 24556 Add: Checks Issued but not Presented for Payment Checks Outstanding 13280 A check for $48 in payment of an account was erroneously                recorded in the check register as $480. 432 Less: Checks Deposit but not Credited     Deposit in transit, not recorded by bank 6392     Bank debit memo for service charges 20 Cash balance according to the bank statement at May 31, 2016 31856 Journal Entries for the above rectification tansactions Date DESCRIPTION POST. REF. Debit Credit May 31,2016 Cash - Dr 110 432    To Accounts Payable 210 432 (Being A check for $48 in payment of an account was erroneously recorded in the check register as $480.) May 31,2016 Miscellaneous Expense - Dr 590 20    To Cash 110 20 (Being Bank debit memo issued for service charges, $20.)

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