Prepare the bank reconciliation at May 31, 2015. (Enter answers to 2 decimal pla

ID: 2422796 • Letter: P

Question

Prepare the bank reconciliation at May 31, 2015. (Enter answers to 2 decimal places, e.g. 15.25. 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 Reconciliation

Cash balance as per book $6,781.50

less:Purchasing charges (40)

Erros sales (50)

Check 1181 error (27)

Interest charges (20) (817)

Add:Note receivable collected 3,000

interest earned 80 3,080

Balance adjusted $9,044.50

NSF (680)

Balance as per bank statement $6,404.60

less;Checks outstanding (576.25)

Add:Deposit in transit 2,416.15

Bank error 800 3216.15

Balance $9,044.50