Exercise 6-11 Bank reconciliation P3 Wright Company deposits all cash receipts o

Question

Exercise 6-11 Bank reconciliation P3 Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, 2017, its Cash account shows a $27,500 debit balance. The company's May 31 bank statement shows $25,800 on deposit in the bank. Prepare a bank reconciliation for the company using the following information. a. The May 31 bank statement lists S100 in bank service charges; the company has not yet recorded the cost of these services b. Outstanding checks as of May 31 total $5,600. .May 31 cash receipts of $6,200 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement d. In reviewing the bank statement, a S400 check written by Smith Company was mistakenly drawn against Wright's account e. The bank statement shows a $600 NSF check from a customer; the company has not yet recorded this NSF check. Check Reconciled bal., $26,800

Explanation / Answer

SOLUTION

Bank Reconciliation Statement-

Particulars Amount ($) Particulars Amount ($) Bank statement balance 25,800 Book balance 27,500 Add: Deposit of May 31 6,200 Deduct: Bank error 400   Bank service charge (100) 34,100 NSF Check (600) Deduct: Outstanding checks (5,600) Adjusted bank balance 26,800 Adjusted book balance 26,800

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