Question
four: (8 points) As Al-Danah Company was preparing to complete its bank reconciliation for the month of May, it listed the following information: 1. Balance
four: (8 points) As Al-Danah Company was preparing to complete its bank reconciliation for the month of May, it listed the following information: 1. Balance of the bank statement $45,300. 2. Balance of Al-Danah's cash account $12,544. 3. A customer's note for $38,000 was collected by the bank. A collection fee of $100 was deducted by the bank and the difference was deposit events before receiving the statement. 4. An interest earned for $1,000 on the average cash balance was added by the bank. There was no prior notification of this item, and it is nom 5. One check written in May, for $32,000 was still outstanding. 6. NSF check returned to Al-Danah Company by the bank $26,520. 7. Al-Danah Company made a bank deposit of $11,200 on the 31st May but this was not recorded by the bank until the 2nd of June. 8. Check No. 405 for $1,382 was correctly made out and sent to a supplier. Al-Danah Company however, incorrectly entered it in their jour 9. Bank charges for May totaled $280. Required: 1. Prepare Al-Danah Company's bank reconciliation statement, for May 31, 2009. 2. Give journal entries that should be prepared Al-Danah Company Bank Reconciliation May 31, 2009
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