On May 31, 2014, Reber Company had a cash balance per books of $7,207.50. The ba
ID: 2496497 • Letter: O
Question
On May 31, 2014, Reber Company had a cash balance per books of $7,207.50. The bank statement from New York State Bank on that date showed a balance of $6,830.60. A comparison of the statement with the cash account revealed the following facts.
1.
The statement included a debit memo of $46.00 for the printing of additional company checks.
2.
Cash sales of $933.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $983.00. The bank credited Reber Company for the correct amount.
3.
Outstanding checks at May 31 totaled $1,011.25. Deposits in transit were $2,842.15.
4.
On May 18, the company issued check No. 1181 for $684 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $648.
5.
A $3,426.00 note receivable was collected by the bank for Reber Company on May 31 plus $86.00 interest. The bank charged a collection fee of $26.00. 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 $1,226.00 that was incorrectly charged to Reber Company by the bank.
7. On May 31, the bank statement showed an NSF charge of $674.00 for a check issued by Sue Allison, a customer, to Reber Company on account.
Prepare the bank reconciliation at May 31, 2014.
Prepare the necessary adjusting entries for Reber Company at May 31, 2014.
1.
The statement included a debit memo of $46.00 for the printing of additional company checks.
2.
Cash sales of $933.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $983.00. The bank credited Reber Company for the correct amount.
3.
Outstanding checks at May 31 totaled $1,011.25. Deposits in transit were $2,842.15.
4.
On May 18, the company issued check No. 1181 for $684 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $648.
5.
A $3,426.00 note receivable was collected by the bank for Reber Company on May 31 plus $86.00 interest. The bank charged a collection fee of $26.00. 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 $1,226.00 that was incorrectly charged to Reber Company by the bank.
7. On May 31, the bank statement showed an NSF charge of $674.00 for a check issued by Sue Allison, a customer, to Reber Company on account.
Prepare the bank reconciliation at May 31, 2014.
Prepare the necessary adjusting entries for Reber Company at May 31, 2014.
Explanation / Answer
2)
Balance as per book Balance as per Bank Add:Note collected (3426+86-26] 3486 Add:Deposit in transit 2842.15 less:Bank charges - 46 error in charging the check 1226 Error in recording sales(983-933] - 50 less:outstanding check (1011.25) Error in payment [684-648] - 36 NSF - 674 Adjusted balance 9887.5 Adjusted balance 9887.5Related Questions
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