DCo spreads herbicides and applies liquid fertilizer for local farmers.

On May $31,2017,$ the DCo's Cash account per its general ledger had this balance.

CASH

The bank statement from State Bank on that date showed the following balance.

STATE BANK

Checks and Debits

Deposits and Credits

$xxx$

$xxx$

Daily Balance

$\frac{5}{31},13,323$

A comparison of the bank statement with the Cash account revealed the following facts.

The statement included a debit memo of $$35$ for the printing of company checks.

Cash sales of $$1,720$ on May $12$ were deposited in the bank. The cash receipts journal

entry and the deposit slip were incorrectly made for $$1,820.$ The bank credited DCo for

the correct amount.

Outstanding checks at May $31$ totalled $$1,225,$ and deposits in transit were $$2,600.$

On May $18,$ the DCo issued check no$.1181$ for $$911$ to J$.$Smith on account. The check,

which cleared the bank in May, was incorrectly journalized and posted by DCo for $$119.$

A $$4,500$ note receivable was collected by the bank for DCo on May $31$ plus $$80$ interest.

The bank charged a collection fee of $$25.$ No interest has been accrued on the note.

Included with the cancelled checks was a check issued by Morray Company to Terry Irvin

for $$900$ that was incorrectly charged to DCo by the bank.

On May $31,$ the bank statement showed an NSF charge of $$1,308$ for a check issued by

Peter Reser, a customer, to DCo on account.

Instructions

$($a$)$ Prepare the bank reconciliation at May $31,2017.$

Working Papers Below

Error in recording check. Original amount owed was $$911.$ Wrongly recorded as payment of

$$119.$ Amount required to "correct" the original entry is the difference between $911-119=$

$$792$ is the difference correctly paid by the bank on behalf of DCO.