The bookkeeper for Wildhorse Manufacturing Ltd. was trying to determine what items would be used in preparing the companys bank reconciliation that she is completing at May 31, 2018, which was the companys first month of operations. The companys bank statement showed the following:

WILDHORSE MANUFACTURING LTD. Bank Statement May 31
Date			Description		Amounts Deducted from Account (Debits)		Amounts Added to Account (Credits)		Balance
May	1		Deposit				27,000		27,000
	3		Cheque, No. 001		1,680				25,320
	5		Cheque, No. 002		7,040				18,280
	15		Deposit				4,320		22,600
	19		Cheque, No. 004		7,720				14,880
	21		Cheque, No. 006		1,070				13,810
	25		Returned chequeNSF, S. Gillis		1,390				12,420
	25		NSF fee		27				12,393
	27		Cheque, No. 009		2,250				10,143
	28		Cheque, No. 010		1,980				8,163
	31		Bank service charges		36				8,127

Wildhorses cash receipts summary (which were all deposited) and cheque summary (which were all mailed out to suppliers) for the month of May showed the following:

Cash Receipts					Cash Payments
Date			Amount		Date			Number		Amount
May	1		$27,000		May	2		001		$1,680
	15		4,320			3		002		7,040
	31		8,480			14		003		1,830
			$39,800			15		004		7,720
						18		005		360
						19		006		1,070
						22		007		2,320
						23		008		510
						25		009		2,250
						26		010		1,980
										$26,760

Review Wildhorses cash receipts summary and determine the amount of any deposits not recorded by the bank. These will be deposits in transit. Hint: It can be useful to check off or cross out the deposits that appear on both the bank statement and on the cash receipts summary because these will not be deposits in transit.

Deposit in transit of May 31

$

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Review Wildhorses cheque summary and determine the amount of any cheques that have not yet cleared the companys bank account. These will be outstanding cheques. Hint: It can be useful to check off or cross out the cheques that appear on both the bank statement and on the cheque summary because these will not be outstanding cheques.

Outstanding Cheques:
Cheque No. 001 May 2Cheque No. 002 May 3Cheque No. 003 May 14Cheque No. 004 May 15Cheque No. 005 May 18Cheque No. 006 May 19Cheque No. 007 May 22Cheque No. 008 May 23Cheque No. 009 May 25Cheque No. 010 May 26		$
Cheque No. 001 May 2Cheque No. 002 May 3Cheque No. 003 May 14Cheque No. 004 May 15Cheque No. 005 May 18Cheque No. 006 May 19Cheque No. 007 May 22Cheque No. 008 May 23Cheque No. 009 May 25Cheque No. 010 May 26
Cheque No. 001 May 2Cheque No. 002 May 3Cheque No. 003 May 14Cheque No. 004 May 15Cheque No. 005 May 18Cheque No. 006 May 19Cheque No. 007 May 22Cheque No. 008 May 23Cheque No. 009 May 25Cheque No. 010 May 26
Cheque No. 001 May 2Cheque No. 002 May 3Cheque No. 003 May 14Cheque No. 004 May 15Cheque No. 005 May 18Cheque No. 006 May 19Cheque No. 007 May 22Cheque No. 008 May 23Cheque No. 009 May 25Cheque No. 010 May 26
		$

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Review Wildhorses bank statement and identify any items on it that are not included in either the companys cash receipts summary or cheque summary. These will be reconciling items to the Cash balance per books.

Deposits in transitOutstanding chequesNSF feeReturned cheque NSF S. GillisBank service charges		$
Deposits in transitReturned cheque NSF S. GillisOutstanding chequesBank service chargesNSF fee
Outstanding chequesReturned cheque NSF S. GillisDeposits in transitNSF feeBank service charges
		$

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Determine the cash balance per books prior to the reconciliation. Hint: This would be equal to: Balance in the cash account at the beginning of the month + Deposits made during the month Cheques issued during the month.

Cash balance per books

$

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