Problem 5-5 (Part Level Submission) Crane Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company's Cash account showed a balance of $6,903.90. The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Checks and Debits Deposits and Credits Daily Balance xXX 5-31 7,133.00 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $57.00 for the printing of additional company checks. 2. Cash sales of $900.15 on May 12 were deposited in the bank. The cash receipts record and the deposit slip were incorrectly made for $950.15. The bank credited Crane Company for the correct amount. 3. Outstanding checks at May 31 totaled $285.25, and deposits in transit were $1,897.15 4. On May 18, the company issued check No. 1181 for $684.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly recorded by Crane Company for $648.00. 5. $2,872.00 was collected by the bank for Crane Company on May 31 through electronic funds transfer 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $343.00 that was incorrectly charged to Crane Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $545.00 for a check issued by Sara Ballard, a customer, to Crane Company on account Your answer is correct. Prepare the bank reconciliation at May 31, 2017. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 52.75.) CRANE COMPANY Bank Reconciliation May 31, 2017 Cash balance per bank statement 7,133.00 Add Deposits in transit 1,897.15 Bank error 343 2240.15 9373.15 LessOutstanding checks 285.25 9087.9 Adjusted cash balance per bank Cash balance per books 6,903.9 AddElectronic funds transfer received 2,872 9775.9 Less v NSF check 545 Error in deposit Check printing charge Error in recording check 50 57.00 36 Adjusted cash balance per books 9087.9 Prepare a tabular analysis or the necessary ad us ments or crane company at May 31, 2017 Include margin explanations for the changes in revenues and expenses ara transaction resu s n a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Round answers to 2 decimal places, e.g. 52.75.) Assets Liabilities+ Liabilities+ Stockholders' Equity Notes Accts. Accts. Pay Cash+ + Rec. + Rev.Exp. May 31 31 31 31 31
