| Zimmerman Company of Shawnee, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2014, the companys Cash account per its general ledger showed a balance of $6,738.90. The bank statement from Shawnee State Bank on that date showed the following balance. | SHAWNEE STATE BANK | | Checks and Debits | | Deposits and Credits | | Daily Balance | | XXX | | XXX | | 5-31 6,968.00 | A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. | 1. | | The statement included a debit memo of $40.00 for the printing of additional company checks. | | 2. | | Cash sales of $883.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $933.15. The bank credited Zimmerman Company for the correct amount. | | 3. | | Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,880.15. | | 4. | | On May 18, the company issued check No. 1181 for $685 to M. Hartley, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Zimmerman Company for $658. | | 5. | | A $2,600.00 note receivable was collected by the bank for Zimmerman Company on May 31 plus $110.00 interest. The bank charged a collection fee of $20.00. No interest has been accrued on the note. | | 6. | | Included with the canceled checks was a check issued by Zinderberg Company to P. Conard for $360.00 that was incorrectly charged to Zimmerman Company by the bank. | | 7. | | On May 31, the bank statement showed an NSF charge of $380.00 for a check issued by Bev Sullivan, a customer, to Zimmerman Company on account. Prepare the bank reconciliation at May 31, 2014. | | | |
