Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The bookkeeper at Anoroc Company as asked you to prepare a bank reconciliation as of May 31. The bank statement for May 1 and the

image text in transcribed

The bookkeeper at Anoroc Company as asked you to prepare a bank reconciliation as of May 31. The bank statement for May 1 and the May T-Account for cash showed the transactions listed below. Anoroc Company's bank reconciliation at the end of April showed a cash balance of $23,800. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. When going through the accounts, you notice that the bank made an error when recording the outgoing company cheque #504. Withdrawals in $ Deposits in $ Balance in $ 5,000 #501 #502 12,000 7,000 11,500 Balance, 01-May 02-May 05-May 07-May 08-May 14-May 17-May Interest Earned 22-May NSF cheque 29-May 31-May Service charges Balance, May 31 #503 600 23,800 28,800 16,800 9,800 21,300 20,700 20,825 20,575 14,175 14,115 14,115 125 #504 250 6,400 60 01-May Balance 01-May 07-May 29-May Cash 23,800 5,000 11,500 4,000 02-May #501 04-May #502 11-May #503 27-May #504 29-May #505 12,000 7,000 600 4,600 1,300 31-May Balance 18,800 Instructions: a) Prepare a bank reconciliation for May b) Prepare any journal entries required as a result of the bank reconciliation c) Explain why these journal entries in (b) are necessary; provide 1-2 sentences. d) After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger

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

The BRC Global Standard For Food Safety A Guide To A Successful Audit

Authors: Ron Kill

2nd Edition

0470670657, 978-0470670651

More Books

Students also viewed these Accounting questions