Question

Wright Company's cash account shows a $28,500 debit balance and its bank statement shows $26,800 on deposit at the close of business on May 31. a. The May 31 bank statement lists $150 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $6,100. c. May 31 cash receipts of $6,700 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 $450 check written by Smith Company was mistakenly drawn against Wright's account. e. The bank statement shows a $500 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information.

Answer 1

Please hit LIKE button if this helped. WrightBR BRS BankReco $ 26,800.00 $ 28,500.00 Cash balance as per cash book add: Electronic fund transfer received Cash balance as per bank statement Add: Deposit in transit Bank error $ 28,500.00 $ 6,700.00 $ 450.00 $ 7,150.00 $ 33,950.00 $ 6,100.00 Less: Bank service Charges NSF Check $ 150.00 $ 500.00 $ Less: Outstanding checks 650.00 Adjusted cash balance as per bank $ 27,850.00 Adjusted cash balance as per book $ 27,850.00