The cash account of Mason Products reveals the following information:

The bank statement for May contains the following information:

A comparison of detailed company records with the bank statement indicates the following information:

The bank amounts are determined to be correct.

Required:
1. Prepare a bank reconciliation for May.
2. Prepare the adjusting entries made by Mason Products as a result of the reconciliation process.
3. What amount is reported for cash on the balance sheet at May31?

Transcribed Image Text:

Cash Balance, 4/30 Deposits during May 10,100 39,600 Checks written during May 40,000 Bank balance, 4/30 Add: Deposits during May $10,100 37,400 $47,500 Less: Checks paid during May NSF check from Higgins, Inc. Bank service charges $38,500 140 60 38,700 S 8,800 Bank balance, 5/31 At 5/31 $2,200 1,500 At 4/30 Deposit in transit Outstanding checks $900 550