Crayola Company’s bank statement for May 2007 shows this data: Balance May 1 $12
ID: 2446602 • Letter: C
Question
Crayola Company’s bank statement for May 2007 shows this data:
Balance May 1 $12,650 Balance May 31 $14,280
Debits: Credits:
NSF Check $175 Notes $505 The cash balance per books at May 31 is $13,319. Your review of the data reveals the following:
1. The NSF check was from WaxCo, a customer
2. The note collected by the bank was a $500 note plus $15 worth of interest. The bank charged $10 as a collection fee.
3. Outstanding checks at May 31 total $2,410
4. Deposits in transit at May 31 total $1,752
5. A Crayola Company check for $352 dated May 10 cleared the bank on May 24. This check, which was a payment on account was journalized for $325
Instructions Prepare a bank reconciliation to arrive at the correct cash balance, including all titles of adjustments.
Explanation / Answer
Answer:
Particulars In$ In$ Balance as per Books on May 31 13319 Add: Notes collected by bank 505 Less: NFS check 175 Less: Error in accounting ($352 - $325) 27 Correct balance as per Books on May 31 13622