Question

Problem 7-5A (Part Level Submission) Wildhorse Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company's Cash account per its general ledger showed a balance of $6,838.90 The bank statement from Emporia State Bank on that date showed the following balance. EMPORIA STATE BANK Checks and Debits Daily Balance Deposits and Credits XXx 5-31 7,068.00 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 $60.00 for the printing of additional company checks. 2. Cash sales of $903.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $953.15. The bank credited Wildhorse Co. for the correct amount. 3. Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,900.15. 4. On May 18, the company issued check No. 1181 for $685.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Wildhorse Co. for $658.00 5. A $2,810.00 note receivable was collected by the bank for Wildhorse 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 $340.00 that was incorrectly charged to Wildhorse Co. by the bank. 7. On May 31, the bank statement showed an NSF charge of $480.00 for a check issued by Sara Ballard, a customer, to Wildhorse Co. on account.

Answer 1

Bank reconciliation
May 31,2017
Cash balance per Bank statement		7068.00
Add:
Deposits in transit	1900.15
Bank error-Tomins	340.00
		2240.15
		9308.15
Less: Outstanding checks		276.25
Adjusted cash balance per bank		9031.90
Cash balance per books		6838.90
Add: Electronic funds transfer received		2810.00
		9648.90
Less:
Check printing charge	60.00
Error in recording check	27.00
Error in deposit	50.00
NSF check	480.00
		617.00
Adjusted Cash balance per books		9031.90