Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wright Company's cash account shows a $29,300 debit balance and its bank statement shows $27.600 on deposit at the close of business on May 31.
Wright Company's cash account shows a $29,300 debit balance and its bank statement shows $27.600 on deposit at the close of business on May 31. a. The May 31 bank statement lists $190 in bank service charges, the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $6,500. c. May 31 cash receipts of $7,100 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 $490 check written by Smith Company was mistakenly drawn against Wright's account e. The bank statement shows a $420 NSF check from a customer, the company has not yet recorded this NSF check. Prepare Its bank reconciliation using the above Information. Answer is not complete. WRIGHT COMPANY Bank Reconciliation May 31 27,890 Book balance Add: S S 25,803 Bank statement balance Add: Deposit of May 31 IS 7,632 7,632 35,522 25,803 Deduct: Outstanding checks S 4,044 S Deduct Bank service charge Bank error NSF check Adjusted book balance 10 10 805 825 4,044 31,478 Adjusted bank balance S S 24,978
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started