Question

Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company’s Cash account per its general ledger showed a balance of $8,110.50. The bank statement from Emporia State Bank on that date showed the following balance. Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 8,120.00 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 for the printing of additional company checks. 2. Cash sales of $841.68 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $881.68. The bank credited Timmins Company for the correct amount. 3. Outstanding checks at May 31 totaled $876.05, and deposits in transit were $1,972.55. 4. On May 18, the company issued check No. 1181 for $693 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $639. 5. $2,200 was collected by the bank for Timmins Company on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $390 that was incorrectly charged to Timmins Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $570 for a check issued by Sara Ballard, a customer, to Timmins Company on account.

Prepare the bank reconciliation at May 31, 2020. (List items that increase cash balance first.) SHEFFIELD COMPANY Bank Reconciliation For the Month Ended May 31, 2020For the Year Ended May 31, 2020May 31, 2020 Check Printing ChargeOutstanding ChecksBank Error—TominsAdjusted Cash Balance Per BankError in Recording Check No.1181Cash Balance Per Bank StatementDeposits in TransitElectronic Funds Transfer ReceivedNSF CheckError in May 12 Deposit $ AddLess : Deposits in TransitOutstanding ChecksCash Balance Per Bank StatementBank Error—TominsAdjusted Cash Balance Per BankElectronic Funds Transfer ReceivedNSF CheckError in May 12 DepositError in Recording Check No.1181Check Printing Charge NSF CheckOutstanding ChecksError in May 12 DepositAdjusted Cash Balance Per BankElectronic Funds Transfer ReceivedError in Recording Check No.1181Cash Balance Per Bank StatementCheck Printing ChargeDeposits in TransitBank Error—Tomins LessAdd : Error in Recording Check No.1181Deposits in TransitCheck Printing ChargeNSF CheckElectronic Funds Transfer ReceivedError in May 12 DepositCash Balance Per Bank StatementBank Error—TominsOutstanding ChecksAdjusted Cash Balance Per Bank Outstanding ChecksCash Balance Per Bank StatementError in Recording Check No.1181Deposits in TransitCheck Printing ChargeAdjusted Cash Balance Per BankElectronic Funds Transfer ReceivedBank Error—TominsNSF CheckError in May 12 Deposit $ Error in May 12 DepositBank Error—TominsElectronic Funds Transfer ReceivedOutstanding ChecksAdjusted Cash Balance Per BooksCash Balance Per BooksDeposits in TransitNSF CheckError in Recording Check No.1181Check Printing Charge $ LessAdd : Electronic Funds Transfer ReceivedCash Balance Per BooksNSF CheckError in Recording Check No.1181Deposits in TransitOutstanding ChecksBank Error—TominsCheck Printing ChargeAdjusted Cash Balance Per BooksError in May 12 Deposit LessAdd : Electronic Funds Transfer ReceivedError in May 12 DepositCash Balance Per BooksNSF CheckError in Recording Check No.1181Outstanding ChecksCheck Printing ChargeDeposits in TransitBank Error—TominsAdjusted Cash Balance Per Books Adjusted Cash Balance Per BooksCash Balance Per BooksError in May 12 DepositDeposits in TransitBank Error—TominsCheck Printing ChargeOutstanding ChecksElectronic Funds Transfer ReceivedNSF CheckError in Recording Check No.1181 Cash Balance Per BooksAdjusted Cash Balance Per BooksElectronic Funds Transfer ReceivedError in Recording Check No.1181Outstanding ChecksBank Error—TominsNSF CheckError in May 12 DepositCheck Printing ChargeDeposits in Transit Adjusted Cash Balance Per BooksCash Balance Per BooksNSF CheckOutstanding ChecksDeposits in TransitBank Error—TominsElectronic Funds Transfer ReceivedCheck Printing ChargeError in May 12 DepositError in Recording Check No.1181 Error in Recording Check No.1181Outstanding ChecksBank Error—TominsElectronic Funds Transfer ReceivedNSF CheckCheck Printing ChargeCash Balance Per BooksError in May 12 DepositDeposits in TransitAdjusted Cash Balance Per Books $ LINK TO TEXT

Answer 1

Bank reconciliation
May 31,2020
Cash balance per Bank statement		8120.00
Add:
Deposits in transit	1972.55
Bank error-Tomins	390.00
		2362.55
		10482.55
Less: Outstanding checks		876.05
Adjusted cash balance per bank		9606.50
Cash balance per books		8110.50
Add: Electronic funds transfer received		2200.00
		10310.50
Less:
Check printing charge	40.00
Error in Recording Check No.1181	54.00
Error in May 12 Deposit	40.00
NSF check	570.00
		704.00
Adjusted Cash balance per books		9606.50