User

Prepare bank reconciliation and related entries.

Wallace COMPANY

Bank Reconciliation

April $30,2024$

Cash Balance per bank $9009$

Add: Deposits in transit $846$

$9855$

Less: Outstanding cheques

$$#$5261358$

$$#$533279$

$$#$541363$

$$#$555792079$

Adjusted cash balance per bank $7776$

The unadjusted cash balance at May $31$ was $$1,075.$ The May bank statement showed the following:

Wallace COMPANY

Bank Statement

May $31,2024$

Cheques and Other Debits Deposits Running

Date Number Amount or Credits Total

Apr. $309009$

May $152613588468497$

$25413638134$

$65562237911$

$6557180012507361$

$99808341$

$1255916506691$

$134267117$

$1316508767$

$145617997968$

$1656220455923$

$202226145$

$2156324873658$

$225646033055$

$2356510332022$

$279803002$

$28$ NSF $54017714233$

$31$ SC $454188$

Additional information from the bank statement:

$1.$ The deposit of $$1,650$ on May $13$ is an electronic transfer from a customer in payment of its account. The amount includes $$35$ of interest, which Wallace Company had not previously accrued.

$2.$ The NSF for $$540$ is for a $$525$ cheque from a customer, J$.$ Kumi, in payment of his account, plus a $$15$ processing fee. The company's policy is to pass on all NSF processing fees to the customer.

$3.$ SC represents bank service charges for the month.

$4.$ The bank made an error when processing cheque #$564.$ The company also made two errors in the month. All cheques were written to pay accounts payable; all cash receipts were collections of accounts receivable.

The company's recorded cash payments and cash receipts for the month were as follows:

Cash Receipts $$ Cash Payments

Date Amount Date Cheque No$.$ Amount

May $51250$ May $2556223$

$898055571800$

$124267558943$

$1822275591650$

$258908560890$

$28177112561799$

$311286155622045$

Total $6825165632887$

$20564306$

$235651033$

$30566950$

Total $13526$

nstructions

a$.$ Prepare a bank reconciliation.

b$.$ Prepare the necessary adjusting journal entries at May $31.$