Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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, 2009image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Accounting

Authors: Christopher D. Burnley

3rd Canadian Edition

1119715474, 9781119715474

More Books

Students also viewed these Accounting questions