Problem 8-3A On May 31, 2017, Reber Company had a cash balance per books of $6,7
ID: 2430704 • Letter: P
Question
Problem 8-3A On May 31, 2017, 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
(a) REBER COMPANY Bank Reconciliation 31.05.2017 Cash balance per bank statement $ 6,404.60 Add: Deposit in transit $ 2,416.15 Bank error—Stiner check 800 $ 3,216.15 $ 9,620.75 Less: Outstanding checks $ 576.25 Adjusted cash balance per bank $ 9,044.50 Cash balance per books $ 6,781.50 Add: Collection of note receivable ($3,000 note plus $80 interest less $20 fee) $ 3,060.00 $ 9,841.50 Less: NSF check $? 680.00 Error in May 12 deposit ($886.15 – $836.15) $ 50.00 Error in recording check No. 1181 ?? ?27.00* Check printing charge $ 40.00 $ 797.00 Adjusted cash balance per books $ 9,044.50 *$685 – $658 (b) 31.05.2017 Cash $ 3,060.00 Miscellaneous Expense $ 20.00 Notes Receivable $ 3,000.00 Interest Revenue $ 80.00 Accounts Receivable—Sue Allison $ 680.00 Cash $ 680.00 Sales Revenue $ 50.00 Cash $ 50.00 Accounts Payable—Lynda Carsen $ 27.00 Cash $ 27.00 Miscellaneous Expense $ 40.00 Cash $ 40.00