Question
You are in the process of preparing a bank reconciliation for Charter Boat Company as of May 31. Listed below is information necessary to prepare
You are in the process of preparing a bank reconciliation for Charter Boat Company as of May 31. Listed below is information necessary to prepare the reconciliation.
Required: (4 pts)
In the spaces provided, place the appropriate letter to indicate whether each item of information should be:
a. | deducted from the balance per bank statement |
b. | added to the balance per bank statement |
c. | deducted from the balance per company records |
d. | added to the balance per company records |
e. | omitted from the reconciliation |
1. | Deposit in transit of $1,500 as of May 31. | |
2. | April service charge of $30 recorded by the company in May. | |
3. | Checks totaling $1,100 written in April that have not cleared the bank by May 31. | |
| 4. | Check of Tomi, Inc. for $780 deposited in May by Charter Boat Company and returned by the bank with the NSF notation in May bank statement. |
| 5. | Canceled check No. 205 written by Charter Boat Company for $200 to Mays, Inc., had been recorded on the company's books as $2,000. |
| 6. | Note receivable face value plus interest collected by the bank and deposited into Carpenter's account and not previously recorded by Charter Boat Company. |
7. | Bank service charge of $35 for May. | |
| 8. | Check of Carpets, Inc. charged in error against Charter Boat |
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