a.

b.

c.

Use the following bank statement and T-account to prepare the May 31 bank reconciliation. BANK STATEMENT Deposits Checks other Date May 1 $ 50 $ 10 100 20 NSF check 12 28 30 $50 #4 #5 26 =8 Balance $200 240 90 70 255 195 200 Uniun NA May 31 service charge 5 May i May 3 Cash (A) 200 50 10 70 100 20 May 3 #2 May 4 #3 May 8 #4 May 11 5 May 21 #6 May 29 7 May 30 *8 200 150 25 55 May 29 May 30 May 31 305 Bank Reconciliation May 31 Company's Books $ 195 Ending Balance per Cash Account Additions: Outstanding Checks S Bank Statement Ending Balance per Bank Statement Additions: Outstanding Checks #8 305 150 70 150 TO 345 375 Deductions: Deductions: Outstanding Checks #7 200 25 200 25 Up-to-Date Cash Balance S 145 Up-to-Data Cash Balance S 350 The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31 The May 31 bank statement and the May T-account for cash (summarized). Martin Company's bank reconciliation at the end of April showed a cash balance of $19,700. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. BANK STATEMENT Checks Deposits Other $ B,000 #301 $11,000 #302 6,400 10000 Balance, May 1 May 2 May 5 May 7 May B May 14 May 17 May 22 May 27 May 31 Balance, May 31 #303 520 Balance $ 19,700 27,700 16,700 10,300 20,300 19,780 19,920 19,620 14,320 14,750 14,750 Interest NSE check $140 300 #304 4, BOO Service charge 20 May 1 Balance May 1 May 7 May 29 Cash (A) 19,700 B,000 11.00 10,000 6, 100 6,400 520 1,800 1,500 19,880 #301 May 2 #302 May #303 May 11 +304 May 23 #305 May 20 May 31 Balance 1. Prepare a bank reconciliation for May. MARTIN COMPANY Bank Reconciliation At May 31 Company's Books Ending Balance Per Cash Account Additions: Bank Statement Ending Balance Per Bank Statement Additions: 0 0 0 Deductions: Deductions: 0 0 Up-to-Date Cash Balance S Up-to-Dale Cash Balance S 0 Campus Stop, Inc. is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $260,100 a. Sold merchandise for cash cost of merchandise $105,430. b. Received merchandise returned by customers as unsatisfactory (but in perfect condition for cash refund (original cost of merchandise $700). c. Sold merchandise (costing SS 850 to a cuscomer on account with terms n/30. d. Collected half of the balance owed by the customer in to e. Granted a partial allowance relauing to credit sales the customer in (c) had not yet paid. 1,650 13,000 6,500 1,660 No Transaction General lournal Debit Credit 1 a(1) Cash 260,100 Sales Revenue 260,100 2 a(2) Cost of Goods Sold 145.430 Inventory 145,430 3 b(1) Cost of Goods Soldi X 1,650 Cash 1,650 4 b(2) 700 Inventory Cost of Goods Sold 700 5 5 c(1) 13.000 Accounts Receivable Sales Revenue 13.000 6 c(2) Cost of Goods Sold 2 5,850 Inventory 5,850 7 d Cash 6.500 Accounts Receivable 8 e Allowance for Doubutul Accounts 1 800 Accounts Ruceivable 1,800