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On May 31, 2021, Crane Theatre's cash account per its general ledger showed the following balance: Date May 31 CASH No. 101 Explanation Ref Debit
On May 31, 2021, Crane Theatre's cash account per its general ledger showed the following balance: Date May 31 CASH No. 101 Explanation Ref Debit Credit Balance Balance 5.199 The bank statement from Canada Bank on that date showed the following balance: Checks and Debits XXX CANADA BANK Deposits and Credits XXX Daily Balance 5/31 5.171 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts 1. 2 The statement included a debit memo of $35 for the monthly bank service charges Cash sales of 5635 on May 12 were deposited in the bank. The bookkeeper recorded the deposit in the cash journalas $645 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. 2. 3 4. The statement included a debit memo of $35 for the monthly bank service charges. Cash sales of $635 on May 12 were deposited in the bank. The bookkeeper recorded the deposit in the cash journal as $645. Outstanding cheques on May 31 totalled $391 and deposits in transit were $1,091. On May 18, the company issued cheque #1581 for $685 to M. Datz on account. The cheque, which cleared the bank in May, was incorrectly journalized and posted by Crane Theatre for $658. A $1.900 note receivable was wired to the bank account of Crane Theatre on May 31. Interest was not collected for the note, Included with the cancelled cheques was a cheque issued by Bohr Theatre for $460 that was incorrectly charged to Crane Theatre by the bank On May 31, the bank statement showed an NSF charge of $696 for a cheque issued by Tyler Bickell, a customer to Crane Theatre on account. 5. 6. 7. Prepare the bank reconciliation at May 31 (List items that increase balance as per bank & books first.) CRANE THEATRE Bank Reconciliation May 31, 2021 Cash balance per bank statement $ Add Deposits in transit 1091 Bank error Bohr Theatre cheque 460 Less Outstanding cheques Less V Outstanding cheques $ Adjusted cash balance per bank Cash balance per books $ Add V Collection of note receivable .ess Service charge $ 35 Bankerror Bohr Theatre cheque 27 Correction of cheque #1581 error for Payment on account 10 May 31 (To record collection of note receivable by bank) 31 (To record NSF cheque & bank service charge expense and to rectify error in recording sales)
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