Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2025, the company's Cash account per its general ledger showed a balance of \(\$ 6,738.90\).

The bank statement from Emporia State Bank on that date showed the following balance.

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

1. The statement included a debit memo of \(\$ 40\) for the printing of additional company checks.

2. Cash sales of \(\$ 883.15\) on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for \(\$ 933.15\). The bank credited Timmins Company for the correct amount.

3. Outstanding checks at May 31 totaled \(\$ 276.25\), and deposits in transit were \(\$ 1,880.15\).

4. On May 18, the company issued check No. 1181 for \(\$ 685\) to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for \(\$ 658\).

5. \(\$ 2,690\) was collected from a customer's note receivable by the bank for Timmins Company on May 31 through electronic funds transfer.

6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for \(\$ 360\) that was incorrectly charged to Timmins Company by the bank.

7. On May 31, the bank statement showed an NSF charge of \(\$ 380\) for a check issued by Sara Ballard, a customer, to Timmins Company on account.

Instructions

a. Prepare the bank reconciliation at May 31, 2025.

b. Prepare the necessary adjusting entries for Timmins Company at May 31, 2025.

Transcribed Image Text:

Checks and Debits XXX Emporia State Bank Deposits and Credits XXX Daily Balance 5-31 6,968.00