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Looking for help with this study problem as well as how you got to the answers! Stromberg Company of Zwingle, Kansas, spreads herbicides and applies
Looking for help with this study problem as well as how you got to the answers!
Stromberg Company of Zwingle, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31. 2012, the company's Cash account per its general ledger showed a balance of S6.738.V0 The bank statement from Zwingle Slate Bank on that dace showed the following balance. A comparison of the details on the hank statement with the details in the Cash account led the following facts. The statement included a debit memo of $40 for the printing of additional company checks. Cash sales of $883.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $933.15. The bank credited Stromberg Company for the correct amount. Outstanding checks at May 31 totaled $276.25. and deposits in transit were 51.880 15. On May 18. the company issued check No. 1181 for $685 to M. Dornbos. on account. The check, which cleared the bank in May was incorrectly journalized and posted by Stromberg Company for $658. A $2,600 note receivable was collected by the bank for Stromberg Company on May 31 plus $110 interest. The bank charged a collection fee of $20. No interest has been accrued on the note Included with the cancelled checks was a check issued by Strongberg Company to P. Jordan for $360 that was incorrectly charged to Stromberg Company by the bank. On May 31. the bank statement showed an NSF charge of $380 for a check issued by Bev Fountain, a customer, to Stromberg Company on account. Instructions Prepare the bank reconciliation at May 31. 2012. Prepare the necessary adjusting entries for Stromberg Company at May 31. 2012Step by Step Solution
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