BANK RECONCILIATION. The cash account of Dixon Products reveals the following information: D-1

REQUIRED:
1. Prepare a bank reconciliation for May.
2. Prepare the adjusting entries to be made by Dixon as a result of the reconciliation process.
3. What amount should be reported for cash on the balance sheet at May 31?

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Balance, 4/30 Deposits during April 11,800 Cash 37,600 Checks written during May The bank statement for May contains the following information: 41,620 Bank balance, 4/30 Add: Deposits during May Less: Checks paid during May Less: Bank service charges Less: NSF check from Frolin, Inc. Bank balance, 5/31 $11,750 37,250 49,000 $40,230 190 40 40,460 $ 8,540 A comparison of detailed company records with the bank statement indicates the fol- lowing information: AT 4/30 AT 5/31 Deposits in transit $800 Outstanding checks. 750 $1,150 2,140 The bank amounts are determined to be correct.