Question

Carla Vista Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company's Cash account per its general ledger showed a balance of $6,883.90. The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Deposits and Credits Checks and Debits XXX Daily Balance 5-317,113.00 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 $53.00 for the printing of additional company checks. 2. Cash sales of $896.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $946.15. The bank credited Carla Vista Co. for the correct amount. 3. Outstanding checks at May 31 totaled $267.25, and deposits in transit were $1,893.15. 4. On May 18, the company issued check No. 1181 for $686.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Carla Vista Co.for $668.00. 5. $2,848.00 was collected from a customer note receivable by the bank for Carla Vista Co. on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C.Pernod for $347.00 that was incorrectly charged to Carla Vista Co. by the bank. 7. On May 31, the bank statement showed an NSF charge of $525.00 for a check issued by Sara Ballard, a customer, to Carla Vista Co. on account

Answer 1

Bank reconciliation
May 31,2022
Cash balance per Bank statement		7113.00
Add:
Deposits in transit	1893.15
Bank error-Tomins	347.00
		2240.15
		9353.15
Less: Outstanding checks		267.25
Adjusted cash balance per bank		9085.90
Cash balance per books		6883.90
Add: Electronic funds transfer received		2848.00
		9731.90
Less:
Check printing charge	53.00
Error in recording check	18.00
Error in deposit	50.00
NSF check	525.00
		646.00
Adjusted Cash balance per books		9085.90
2
	Debit	Credit
Cash	2848.00
Accounts Receivable/Notes Receivable		2848.00
(To record collection of note receivable by bank)
Accounts Receivable - S. Ballard	525.00
Cash		525.00
(To record NSF check)
Sales revenue	50.00
Cash		50.00
(To record error in deposit)
Accounts Payable - H. Moses	18.00
Cash		18.00
(To record error in recording check)
Bank charges expense/Miscellaneous expense	53.00
Cash		53.00
(To record charge for printing company checks)