Question
On May 31, 2022, Ivanhoe Company had a cash balance per books of $6,748.20. The bank statement from New York State Bank on that date
On May 31, 2022, Ivanhoe Company had a cash balance per books of $6,748.20. The bank statement from New York State Bank on that date showed a balance of $6,497.30. A comparison of the statement with the Cash account revealed the following facts.
1. | The statement included a debit memo of $53.00 for the printing of additional company checks. | |
2. | Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Ivanhoe Company for the correct amount. | |
3. | Outstanding checks at May 31 totaled $593.50. Deposits in transit were $3,600.40. | |
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 Ivanhoe Company for $648. | |
5. | A $4,500 note receivable was collected by the bank for Ivanhoe Company on May 31 plus $75 interest. The bank charged a collection fee of $40. No interest has been previously recorded on the note. | |
6. | Included with the canceled checks was a check issued by Stiner Company to Ted Cress for $840.00 that was incorrectly charged to Ivanhoe Company by the bank. | |
7. | On May 31, the bank statement showed an NSF charge of $800.00 for a check issued by Sue Allison, a customer, to Ivanhoe Company on account. |
A) Prepare the bank reconciliation at May 31, 2022. (List items that increase cash balance first. Round answers to 2 decimal places, e.g. 2,245.25.)
B) Prepare the necessary entries for Ivanhoe Company at May 31, 2022.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started