Question

PA5-2 Preparing a Bank Reconciliation The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The bank statement for May 1 and the May T-account for cash showed the transactions listed below. Martin Company's bank reconciliation at the end of April showed a cash balance of $18,400. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. Withdrawals Deposits $ 7,600 # 301 $10,600 # 302 6,200 Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17-Interest Earned May 22-NSF cheque May 30 May 31-Service charges Balance, May 31 . 10,000 # 303 460 Balance $18,400 26,000 15,400 9,200 19,200 18,740 18,856 18,616 14,416 14,360 14,360 116 240 # 304 4,200 56 + Cash (A) - Balance May 1 May 7 May 29 18,400 7,600 10,000 3,600 10,600 6, 200 460 4,200 1,260 May 02 #301 May 04 #302 May 11 #303 May 30 #304 May 29 #305 May 31 Balance 16,880

Answer 1

Martin Company
Bank Reconciliation
May-31
Bank statement balance	14,360	Book balance	16,880
Add:		Add:
Deposit in transit	3,600	Interest earned	116
	17,960		16,996
Less:		Less:
Outstanding check	-1,260	Bank service charges	-56
		NSF Check	-240
Adjusted bank balance	$16,700	Adjusted book balance	$16,700

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