Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 32 Clark Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for May, 2020, indicated the following: The bank statement

QUESTION 32

  1. Clark Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for May, 2020, indicated the following:

    The bank statement for May, 2020, indicated the following:

    Amounts

    Balance, May 31, 2020

    $65,000

    Service charge for May

    60

    Interest earned during May

    100

    NSF check from Nark Corp. (deposited by Clark)

    2,000

    Note ($4,000) and interest ($180) collected for Clark from a customer of Clark's

    4,180

    An analysis of canceled checks and deposits and the records of Clark revealed the following items:

    Amounts

    Checking account balance per Clark's books

    $58,570

    Outstanding checks as of May 31

    6,630

    Deposit in transit at May 31

    2,780

    Error in recording check #205 issued by Clark

    360

    The correct amount of check #205 is $590, but it was recorded as a cash disbursement of $950. The check appeared on the bank statement correctly.

    The bank reconciliation structure is shown below: Balance per bank statement, May 31 $ Add: Deduct: ____________ Adjusted balance, May 31 $

    ========== Balance per books, May 31 $ Add:

    Deduct: ____________ Adjusted balance, May 31 $ ==========

    Indicate where the $58,570 balance at 5/31/20 will appear in the above structure.

    a. Add to balance per books

    b. Balance per bank statement

    c. Balance per books

    d. Add to balance per bank statement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Clarence Byrd, Ida Chen

4th Edition

013089611X, 978-0130896117

More Books

Students also viewed these Accounting questions

Question

Explain internal recruitment methods.

Answered: 1 week ago

Question

Summarize job analysis for team members.

Answered: 1 week ago

Question

Describe the recruitment process.

Answered: 1 week ago