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On May 31, RDC Company had a cash balance per books of $13,126. The bank statement from City Bank on that date showed a
On May 31, RDC Company had a cash balance per books of $13,126. The bank statement from City Bank on that date showed a balance of $15,230. A comparison of the bank statement with the company's Cash account revealed the following: 1. The bank statement included a bank service charge of $80, which is not recorded by RDC's book. 2. The bank statement included electronic collections from customers totaling $4,188. These were not previously recorded by the company. 3. Outstanding cheques at April 30 is $2,900. In May, $2,240 cheques are cleared by the bank, and $1,892 cheques are written by RDC. 4. A cheque $1,200 issued by ODC Inc. was incorrectly charged to RDC company by the City bank. 5. On May 31, the bank statement showed a returned (NSF) cheque for $1,350 issued by a customer in payment of its account. In addition, the bank charged $80 processing fee for this transaction. 6. The May 31 deposit of $1,926 was not included in the deposits on the May bank statement. The deposit had been placed in the bank's night deposit chute on May 31. Required: 1. Prepare the bank reconciliation per bank and per book at May 31 (6 points). 2. Prepare any journal entries required from the reconciliation (3 points).
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