Question

Wright Company deposits all cash receipts on the day when they are received and it makes all cash pay- ments by check. At the close of business on May 31l, 2017, its Cash account shows a $27,500 debit bal- ance. The company's May 31 bank statement shows $25, 800 on deposit in the bank. Prepare a bank reconciliation for the company using the following information. a. The May 31 bank statement lists $100 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $5,600. c. May 31 cash receipts of $6,200 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 $400 check written by Smith Company was mistakenly drawn against Wright's account. e. The bank statement shows a $600 NSF check from a customer; the company has not yet recorded this NSF check.

Answer 1

Bank reconciliation

Unadjusted bank Balance	25800	Adjusted book balance	27500
Deposit in transit	6200
Error in Check	400
Less: Outstanding Check	-5600	Less: Bank Charges	-100
		Less: NSF Check	-600
Adjusted balance	26800	Adjusted balance	26800