Question

Required information [The following information applies to the questions displayed below.] The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T-account for cash (summarized) Martin Company's bank reconciliation at the end of April showed a cash balance of $22,400. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. BANK STATEMENT Deposits Checks Other Balance $22,400 31,400 19,400 11,800 22,800 22,220 22,420 22,060 16,660 16,560 16,560 Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17 May 22 May 27 May 31 Balance, May 31 9,000 #301 $12,000 7,600 #302 11,000 # 303 580 $200 Interest NSF check 360 # 304 5,400 Service charge 100

Answer 1

Balance in cash account is $22,060.

Bank reconciliation Cash balance as per bank Add: Deposit in transit 16,560 7,600 24,160 -2,100 22,060 Less: Outstanding check Adjusted cash balance Cash balance as per book Add: Interest earned 22,320 200 22,520 -360 -100 22,060 Less: NSF check Service charge Adjusted cash balance