EMPORIA STATE BANK Checks and Debits Deposits and Credits Daily Balance Date Acc
ID: 2581103 • Letter: E
Question
EMPORIA STATE BANK
Checks and Debits
Deposits and Credits
Daily Balance
Date
Account Titles and Explanation
Debit
Credit
(To record collection of note receivable by bank)
(To record NSF check)
(To correct error in deposit)
(To correct error in recording check)
(To record charge for printing company checks)
Sheridan Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company’s Cash account per its general ledger showed a balance of $6,818.90.The bank statement from Emporia State Bank on that date showed the following balance.
EMPORIA STATE BANK
Checks and Debits
Deposits and Credits
Daily Balance
XXX XXX 5-31 7,048.00A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.
1. The statement included a debit memo of $56.00 for the printing of additional company checks. 2. Cash sales of $899.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $949.15. The bank credited Sheridan Company for the correct amount. 3. Outstanding checks at May 31 totaled $285.25, and deposits in transit were $1,896.15. 4. On May 18, the company issued check No. 1181 for $684.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sheridan Company for $648.00. 5. A $2,786.00 note receivable was collected by the bank for Sheridan Company on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $344.00 that was incorrectly charged to Sheridan Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $460.00 for a check issued by Sara Ballard, a customer, to Sheridan Company on account.
Explanation / Answer
Bank Reconcilation Cash balance per bank 7048.00 Add: Deposits in transit 1,896.15 Bank Error 344 2240.15 9288.15 less: outstanding checks 285.25 Adjusted cash balance per bank 9002.90 Cash balance per books 6,818.90 Add: Electronic funds transfer received 2,786 9,604.90 less: printing charges 56 Error in deposit 50 error in recording check 36 NSF 460 602 Cash balance per books 9,002.90 Date Account titles & Explanations Debit Credit 31-May Cash 2,786 note receivable 2,786 Account receivable 460 cash 460 sales 50 cash 50 Accounts payable 36 cash 36 printing charges 460 cash 460
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