Prepare the bank reconciliation at May 31, 2015. List items that increase cash b
ID: 2422795 • Letter: P
Question
Prepare the bank reconciliation at May 31, 2015. List items that increase cash balance first.
On May 31, 2015, Reber Company had a cash balance per books of $6,781.50. The bank statement from New York State Bank on that date showed a balance of $6,404.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a debit memo of $40.00 for the printing of additional company checks 2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $576.25. Deposits in transit were $2,416.15 4. On May 18, the company issued check no. 1181 for $685 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $658 5. A $3,000.00 note receivable was collected by the bank for Reber Company on May 31 plus $80.00 interest. The bank charged a collection fee of $20.00. 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 $800.00 that was incorrectly charged to Reber Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $680.00 for a check issued by Sue Allison, a customer, to Reber Company on account.Explanation / Answer
Bank balance as per cashbook..............$6781.50
Bank charges as for chequebook................($40.00)
sales overrecorded....................................($50.00)
Cheque 1181 corrected.............................($27.00)
Note recievable collected.......................... $2500.00
Interest earned.........................................$80.00
collection charges.....................................($20.00)
NSF charge...............................................($680.00)
Adjusted cash balance...............................$8544.50
bank reconsiliation statement
Balance per bank statement...................$6404.60
Unpresented cheques.............................($576.25)
Deposits in transit..................................$1916.15
Bank error.............................................$800.0
Adjusted cash balance .........................$8544.40