Design Layout 11 ' References Mailings Review View >> Tell me 12 - 21 -A- = = = = viv St X X 0 Problem 7-3B. (This problem is NOT in your textbook) DCo spreads herbicides and applies liquid fortilizer for local farmers On May 31, 2017, the DCO's Cash account per its general ledger had this balance CASH Date Explanation Ref. Debit Credit Balance May 31 Balance 13,287 The bank statement from State Bank on that showed the follo balance STATE BANK Checks and Debits Deposits and Credits Daily Balance XXX XXX 5/31 13,332 A comparison of the bank statement with the Cash account revealed the following facts. 1. The statement included a debit momo of $35 for the printing of company chocks. 2. 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 3. Outstanding checks at May 31 totaled $1,225, and deposits in transit were $2,800. 4. 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. 5. A $4,500 note receivable was collected by the bank for DCo on May 31 plus sellinterest. The bank charged a collection fee of $25. No interest has been accrued on the note. 6. Included with the canceled checks was a check issued by Marray. Company to Terry Irvin for $900 that was incorrectly charged to DCo by the bank. 7. 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 (a) DCO Bank Reconciliation May 31, 2017 Cash balance per bank statement 13,332 ords English (United States) Focus M Design Layout References Mailings Review View Tell me Sh n. 11 ' . DA A Uab x On Styles Styles Pane 3. Outstanding checks at May 31 totaled $1,225, and deposits in transit were $2,600. 4. 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. 5. 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. 6. Included with the cooled checks was a check issued by Marcay Company to Terry Irvin for $900 that was incorrectly charged to DCo by the bank 7. On May 31, the bank statement showed an NSF charge of $1,308 for a check insued by Peter Roser, a customer, to DCo on account. Instructions (a) Prepare the bank reconciliation at May 31, 2017 Working Papers Below DCO Bank Reconciliation May 31, 2017 Cash balance per bank statement 13,332 Adjusted cash balance per bank 15,607 Cash balance per books 13,287 15,607 Adjusted cash balance per books *911119 ras English (United States) - Focus E DE
