Bank Reconciliation

The following information is available to assist you in preparing a bank reconciliation for Cuyahoga Corporation on May 31:

1. The balance on the May 31 bank statement is $8,432.11.
2. Not included on the bank statement is a $1,250 deposit made by Cuyahoga Corporation late on May 31.
3. A comparison between the canceled checks returned with the bank statement and the company records indicated that the following checks are outstanding at May 31:

   No. 123	$23.40
   No. 127	145.00
   No. 128	210.80
   No. 130	65.99

4. The Cash account on the company's books shows a balance of $9,965.34.
5. The bank acts as a collection agency for interest earned on some municipal bonds held by Cuyahoga Corporation. The May bank statement indicates interest of $465.00 earned during the month.
6. Interest earned on the checking account and added to Cuyahoga Corporation' account during May was $54.60. Miscellaneous bank service charges amounted to $50.00.
7. A customer's NSF check in the amount of $164.67 was returned with the May bank statement.
8. A comparison between the deposits listed on the bank statement and the company's books revealed that a customer's check in the amount of $123.45 was recorded on the books during May but was never added to the company's account. The bank erroneously added the check to the account of Chattanooga Corporation, which has an account at the same bank.
9. The comparison of deposits per the bank statement with those per the books revealed that another customer's check in the amount of $101.10 was correctly added to the company's account. In recording the check on the company's books, however, the accountant erroneously increased the Cash account by $1,011.00.

Required:

Enter all amounts rounded to the nearest cent.

1. Prepare a bank reconciliation in good form.

Cuyahoga Corporation
Bank Reconciliation
May 31
Balance per bank statement, May 31		$fill in the blank e03a11fd2058f89_1
	$fill in the blank e03a11fd2058f89_3
	fill in the blank e03a11fd2058f89_5	fill in the blank e03a11fd2058f89_6
No. 123	$fill in the blank e03a11fd2058f89_8
No. 127	fill in the blank e03a11fd2058f89_9
No. 128	fill in the blank e03a11fd2058f89_10
No. 130	fill in the blank e03a11fd2058f89_11	fill in the blank e03a11fd2058f89_12
Adjusted balance, May 31		$fill in the blank e03a11fd2058f89_13
Balance per books, May 31		$fill in the blank e03a11fd2058f89_14
	$fill in the blank e03a11fd2058f89_16
	fill in the blank e03a11fd2058f89_18	fill in the blank e03a11fd2058f89_19
	$fill in the blank e03a11fd2058f89_21
	fill in the blank e03a11fd2058f89_23
	$fill in the blank e03a11fd2058f89_25	fill in the blank e03a11fd2058f89_26
Adjusted balance, May 31		$fill in the blank e03a11fd2058f89_27

2. A friend says to you: I dont know why companies bother to prepare bank reconciliationsit seems a waste of time. Why dont they just do like I do and adjust the Cash account for any difference between what the bank shows as a balance and what shows up in the books? Why does a bank reconciliation should be prepared as soon as a bank statement is received.

A bank reconciliation is needed to detect errors and omissions in records.