Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carla Vista Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the companys Cash account per its

image text in transcribedCarla Vista Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the companys Cash account per its general ledger showed a balance of $6,883.90. The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 7,113.00 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 $53.00 for the printing of additional company checks. 2. Cash sales of $896.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $946.15. The bank credited Carla Vista Co. for the correct amount. 3. Outstanding checks at May 31 totaled $267.25, and deposits in transit were $1,893.15. 4. On May 18, the company issued check No. 1181 for $686.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Carla Vista Co. for $668.00. 5. A $2,848.00 note receivable was collected by the bank for Carla Vista Co. on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $347.00 that was incorrectly charged to Carla Vista Co. by the bank. 7. On May 31, the bank statement showed an NSF charge of $525.00 for a check issued by Sara Ballard, a customer, to Carla Vista Co. on account. Prepare the bank reconciliation at May 31, 2017. (List items that increase balance as per bank & books first.)

Carla Vista Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company's Cash account per its general ledger showed a balance of $6,883.90. The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Checks and Debits XXX Deposits and Credits XXX Daily Balance 5-317,113.00 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 $53.00 for the printing of additional company checks. 2. Cash sales of $896.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $946.15. The bank credited Carla Vista Co.for the correct amount. 3. Outstanding checks at May 31 totaled $267.25, and deposits in transit were $1,893.15. 4. On May 18, the company issued check No. 1181 for $686.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Carla Vista Co.for $668.00. 5. A $2,848.00 note receivable was collected by the bank for Carla Vista Co. on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $347.00 that was incorrectly charged to Carla Vista Co. by the bank. 7. On May 31, the bank statement showed an NSF charge of $525.00 for a check issued by Sara Ballard, a customer to Carla Vista Co, on account

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter C. Brewer

Custom Edition

0077842987, 978-0077842987

More Books

Students also viewed these Accounting questions