Question
fours (3 points) As Al-Danah Company was preparing to complete its bank reconciliation for the month of May, it listed the following information: a. Balance
fours (3 points) As Al-Danah Company was preparing to complete its bank reconciliation for the month of May, it listed the following information: a. Balance of the bank statement $45,300. b. Balance of Al-Danah's cash account $12,544. c. 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 deposited in the account. The company had not recorded these events before receiving the statement. d. 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 not yet recorded. e. One check written in May, for $32,000 was still outstanding. f. NSF check returned to Al-Danah Company by the bank $26,520. & Al-Danah Company made a bank deposit of $11,200 on the 31" May but this was not recorded by the bank until the 2nd of June. h. Check No. 405 for $1,382 was correctly made out and sent to a supplier. Al- Danah Company however, incorrectly entered it in their journal as $1,238. i. 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 as the result of the bank reconciliation. 1. Al-Danah Company Bank Reconciliation May 31, 2009
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