Bank Reconciliation}

The cash account of Mason Products reveals the following information:

The bank amounts are determined to be correct.
Required:
1. Prepare a bank reconciliation for May.
2. Prepare the journal entries made by Mason Products as a result of the reconciliation process.
3. What amount is reported for cash on the statement of financial position at May 31?

Problem

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Balance, 4/30 Deposits during May $10,100 39,600 Cash Cheques written during May $40,000 The bank statement for May contains the following information: Bank balance. 4/30 Add: Deposits during May $ 10,100 37,400 47,500 Less: Cheques paid during May NSF cheque from Frolin Inc. $(38,500) (140) (60) (38,700) S 8,800 Bank service charges Bank balance, 5/31 A comparison of detailed company records with the bank statement indicates the following information: Deposit in transit Outstanding cheques At 4/30 At 5/31 $900 550 $2,200 1,500