Sheridan Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company's Cash account per its general ledger showed a balance of $6,873.90. The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Deposits and Credits Checks and Debits XXX Daily Balance 5-317,103.00 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 $51.00 for the printing of additional company checks. 2. Cash sales of $894.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $944.15. The bank credited Sheridan Company for the correct amount. 3. Outstanding checks at May 31 totaled $294.25, and deposits in transit were $1,891.15. 4. On May 18, the company issued check No. 1181 for $683.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sheridan Company for $638.00. 5. A$2,836.00 note receivable was collected by the bank for Sheridan 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 $349.00 that was incorrectly charged to Sheridan Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $515.00 for a check issued by Sara Ballard, a customer, to Sheridan Company on account. Prepare the bank reconciliation at May 31, 2017. (List items that increase balance as per bank & books first.) SHERIDAN COMPANY Bank Reconciliation For the Year Ended May 31, 2017 : Cash balance per bank statement : Add :: Deposits in transit $ 18915 Bankerror Less & Outstanding checks 294.25 Adjusted cash balance per bank Cash balance per books Add :: Electronic funds transfer received NSF check Error in deposit Error in recording check Check printing charge Adjusted cash balance per books | eTextbook and Media List of Accounts - Your answer is partially correct. Prepare the necessary adjusting entries for Sheridan Company at May 31, 2017. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Date Account Titles and Explanation Debit Credit May 31 Cash Notes Receivable (To record collection of note receivable by bank) 31 Accounts Receivable | Cash (To record NSF check) Sales Revenue 31 Cash (To correct error in deposit) 31 Accounts Payable Cash To correct error in recordine checkl 31 Miscellaneous Expense Cash 51 (To record charge for printing company checks)
