Question
On May 31 202X the cash account of Perkins supply company had a balance of 43820. On the date the bank statement indicated a balance
On May 31 202X the cash account of Perkins supply company had a balance of 43820. On the date the bank statement indicated a balance of 54600.
The bank reported the collection of a note recievable for Perkins of 6300 plus 300 of interest. The 1700 cheque of a customer,Raymond Frank, was returned by the bank because of insufficient funds. The bank charged Perkins 60 for services. The bank erroneously failed to credit 4200 deposit to Perkins account.
It was observed that the bank statement did not include a deposit of 4700 made by Perkins on May 31 and that cheques totaling 13400 issued by Perkins had not cleared the bank. Perkins recorded an insurance expense payment of 160 as 1600.
a) Prepare a bank conciliation (in good form) as of may 31.
b)Prepare,in general Journal form, the entries necessary to adjust Perkins' records based on the bank reconciliation.
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