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REBER COMPANY Bank Reconciliation May 31, 2017 On May 31, 2017, Reber Company ha

ID: 2575317 • Letter: R

Question

REBER COMPANY
Bank Reconciliation
May 31, 2017

On May 31, 2017, Reber Company had a cash balance per books of $7,071.50. The bank statement from New York State Bank on that date showed a balance of $6,694.60. A comparison of the statement with the cash account revealed the following facts.
1. The statement included a debit memo of $48.00 for the printing of additional company checks. 2. Cash sales of $735.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $785.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $884.25. Deposits in transit were $2,706.15. 4. On May 18, the company issued check No. 1181 for $683 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $638. 5. A $3,290.00 note receivable was collected by the bank for Reber Company on May 31 plus $88.00 interest. The bank charged a collection fee of $28.00. 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 $1,090.00 that was incorrectly charged to Reber Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $672.00 for a check issued by Sue Allison, a customer, to Reber Company on account.

Explanation / Answer

Bank Reconciliation Statement

Balance as per bank statement on May 31, 2017 $6694.60 Add deposits in transit 2706.15 Less outstanding checks -884.25 Add check wrongly charged 1090.00 Adjusted balance as per bank $9606.50 Balance as per books on May 31, 2017 $7071.50 Less Check printing charges -48.00 Less Excess cash sales recorded -50.00 Less Wrong posting of check no. 1181 -45.00 Add Note receivable colllected 3290.00 Add Interest 88.00 Less Collection fee -28.00 Less NSF check -672.00 Adjusted balance as per books $9606.50