Question
The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The bank statement for May 1 and the
The bookkeeper at Martin Company has 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. Martin Companys bank reconciliation at the end of April showed a cash balance of $19,700. No deposits were in transit at the end of April, but a deposit was in transit at the end of May.
Withdrawals | Deposits | Other | Balance | ||||||||||||
Balance, May 1 | $ | 19,700 | |||||||||||||
May 2 | $ | 8,900 | 28,600 | ||||||||||||
May 5 | # | 301 | $ | 11,900 | 16,700 | ||||||||||
May 7 | # | 302 | 5,550 | 11,150 | |||||||||||
May 8 | 10,000 | 21,150 | |||||||||||||
May 14 | # | 303 | 590 | 20,560 | |||||||||||
May 17Interest Earned | $ | 129 | 20,689 | ||||||||||||
May 22NSF cheque | 370 | 20,319 | |||||||||||||
May 29 | # | 304 | 5,500 | 14,819 | |||||||||||
May 31Service charges | 69 | 14,750 | |||||||||||||
Balance, May 31 | 14,750 | ||||||||||||||
+ Cash (A) |
May 1 Balance | 19,700 | |||
May 1 | 8,900 | 11,900 | May 02 #301 | |
May 7 | 10,000 | 5,550 | May 04 #302 | |
May 29 | 4,900 | 590 | May 11 #303 | |
5,500 | May 30 #304 | |||
1,390 | May 29 #305 | |||
May 31 Balance | 18,570 | |||
Required: 1. Prepare a bank reconciliation for May.
2. Prepare any journal entries required as a result of the bank reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger?
4. If the company also has $59 on hand, which is recorded in a different account called Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the balance sheet at the end of May?
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