Question

Exercise 6-12 Bank reconciliation P3 Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, its Cash account shows a $27.500 debit balance. 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 55,600. 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 5600 NSF check from a customer, the company has not yet recorded this NSF check. Check Reconciled al 526.800

Answer 1

Bank Statement Balance	25,800
(+) Deposit in Transit(Cash to be received in bank)	6,200
(-) Outstanding checks(checks issued to party and recorded in G/L but not presented for payment)	5,600

Adjusted bank balance

26,400

Balance as per G/L	27,500
(-) Bank service charges(not recorded in G/L)	100
(-) Error on check	400
(-)NSF check not recorded in books	600
Adjusted cash balance	26,400