Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of

image text in transcribed

Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, its Cash account shows a $30,100 debit balance. The company's May 31 bank statement shows $28,400 on deposit in the bank. a. The May 31 bank statement lists $230 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $6,900. c. May 31 cash receipts of $7,500 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement d. In reviewing the bank statement, a $530 check written by Smith Company was mistakenly drawn against Wright's account e. The bank statement shows a $340 NSF check from a customer, the company has not yet recorded this NSF check. Prepare a bank reconciliation for the company using the above information. WRIGHT COMPANY Bank Reconciliation May 31 Bank statement balance Book balance Add Add Deduct Deduct: Adjusted bank balance Adjusted book balance

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

Management And Cost Accounting

Authors: Charles T. Horngren, Alnoor Bhimani, Srikant M. Datar, George Foster

1st Edition

0130805475, 978-0130805478

More Books

Students also viewed these Accounting questions

Question

How would you typify the trends of trade unionism internationally?

Answered: 1 week ago