On May 31, 2017, Reber Company had a cash balance per books of $6,881.50. The ba
ID: 2475938 • Letter: O
Question
On May 31, 2017, Reber Company had a cash balance per books of $6,881.50. The bank statement from New York State Bank on that date showed a balance of $6,504.60. A comparison of the statement with the cash account revealed the following facts.
On May 31, the bank statement showed an NSF charge of $671.00 for a check issued by Sue Allison, a customer, to Reber Company on account.
Prepare the bank reconciliation at May 31, 2017.
Prepare the necessary adjusting entries for Reber Company at May 31, 2017
1. The statement included a debit memo of $49.00 for the printing of additional company checks. 2. Cash sales of $832.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $882.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $685.25. Deposits in transit were $2,516.15. 4. On May 18, the company issued check No. 1181 for $662 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $626. 5. A $3,100.00 note receivable was collected by the bank for Reber Company on May 31 plus $89.00 interest. The bank charged a collection fee of $29.00. 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 $900.00 that was incorrectly charged to Reber Company by the bank. 7.On May 31, the bank statement showed an NSF charge of $671.00 for a check issued by Sue Allison, a customer, to Reber Company on account.
Prepare the bank reconciliation at May 31, 2017.
Prepare the necessary adjusting entries for Reber Company at May 31, 2017
Explanation / Answer
Balance as per BOOK 6881.5 Balance as per bank 6504.6 less:Bank service charges -49 lesS:outstanding check - 685.25 error in recording deposit (882-832) -50 Add:deposit in transit 2516.15 Error in recording issued check (662-626) - 36 error made 900 NSF Returned - 671 Add:note collected [3100+89-29] 3160 9235.5 Adjusted balance 9235.5 Date Title Debit credit a Accounts receivable 671 Cash 671 [Being NSF returned] b Cash 3160 Bank charges 29 Note receivable 3100 interest revenue 89 [being note collected] c Bank charges 49 cash 49 d sales 50 cash 50 [error in recording sales] e Accounts payable 36 cash 36
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