Problem 7-05A Crane Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company's Cash account per its general ledger 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 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 journal entry 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 journalized and posted by Crane Company for $648.00. 5. $2,872.00 was collected from a customer note receivable 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. Prepare the bank reconciliation at May 31, 2022. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 5,275. 50.) CRANE COMPANY Bank Reconciliation May 31, 2022 7,133.00 Cash balance per bank statement : Add Deposits in transit 1,897.15 $ Bank error 343.00 2240.15 9373.15 Less : Outstanding checks . 285.25 Adjusted cash balance per bank 9087.90 6,903.90 Add Electronic funds transfer received 2,872.00 Less : Check printing charge + 57.00 $ 36.00 Error in recording check Error in deposit . 50.00 NSF check . 545.00 688.00 Adjusted cash balance per books 9087.90 Prepare the necessary adjusting entries for Crane Company at May 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275. 50.) Date Account Titles and Explanation Debit Credit May 31 (To record collection of note receivable by bank) 31 (To record NSF check) 31 (To correct error in deposit) 31 (To correct error in recording check) 31 (To record charge for printing company checks) Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Po
