Question
On May 31, 2014, Reber Company had a cash balance per books of $7,207.50. The bank statement from New York State Bank on that date
On May 31, 2014, Reber Company had a cash balance per books of $7,207.50. The bank statement from New York State Bank on that date showed a balance of $6,830.60. A comparison of the statement with the cash account revealed the following facts.
1. |
| The statement included a debit memo of $46.00 for the printing of additional company checks. |
2. |
| Cash sales of $933.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $983.00. The bank credited Reber Company for the correct amount. |
3. |
| Outstanding checks at May 31 totaled $1,011.25. Deposits in transit were $2,842.15. |
4. |
| On May 18, the company issued check No. 1181 for $684 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $648. |
5. |
| A $3,426.00 note receivable was collected by the bank for Reber Company on May 31 plus $86.00 interest. The bank charged a collection fee of $26.00. No interest has been accrued on the note. |
6. |
| Included with the cancelled checks was a check issued by Stiner Company to Ted Cress for $1,226.00 that was incorrectly charged to Reber Company by the bank. |
|
| 7. On May 31, the bank statement showed an NSF charge of $674.00 for a check issued by Sue Allison, a customer, to Reber Company on account.
Prepare the bank reconciliation at May 31, 2014.
Prepare the necessary adjusting entries for Reber Company at May 31, 2014. |
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