Question

 Wright Company's cash account shows a $29,500 debit balance and its bank statement shows $27,800 on deposit at the close of business on May 31.

 a. The May 31 bank statement lists $200 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $6,600.

 c. May 31 cash receipts of $7,200 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 $500 check written by Smith Company was mistakenly drawn against Wright's account. e. The bank statement shows a $400 NSF check from a customer; the company has not yet recorded this NSF check.

 Prepare its bank reconciliation using the above information.

Answer 1

WRIGHT COMPANY Bank Reconciliation May 31 Bank statement balance 27,800 Book balance 29,500 Add: Add: Deposit in transit 7,200 7,200 Deduct: Deduct: Outstanding check 6,600 Bank service charges 200 -6,600 NSF Check 400 Correction of book error 500 -1,100 Adjusted bank balance $28,400 Adjusted book balance $28,400

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