Exercise 8-14 Bank reconciliation LO P3

Wright Company's cash account shows a $28,100 debit balance and its bank statement shows $26,400 on deposit at the close of business on May 31.

1. The May 31 bank statement lists $130 in bank service charges; the company has not yet recorded the cost of these services.
2. Outstanding checks as of May 31 total $5,900.
3. May 31 cash receipts of $6,500 were placed in the banks night depository after banking hours and were not recorded on the May 31 bank statement.
4. In reviewing the bank statement, a $430 check written by Smith Company was mistakenly drawn against Wrights account.
5. The bank statement shows a $540 NSF check from a customer; the company has not yet recorded this NSF check.

Prepare its bank reconciliation using the above information.

WRIGHT COMPANY Bank Reconciliation May 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance