Question

Problem 7-3A (Part Level Submission) On May 31, 2015, Reber Company had a cash balance per books of $7,095.50. The bank statement from New York State Bank on that date showed a balance of $6,718.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a debit memo of $48.00 for the printing of additional company checks. 2. Cash sales of $734.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $784.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $908.25. Deposits in transit were $2,730.15. 4. On May 18, the company issued check no. 1181 for $683 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $638. 5. A $3,314.00 note receivable was collected by the bank for Reber Company on May 31 plus $88.00 interest. The bank charged a collection fee of $28.00. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Stiner Company to Ted Cress for $1,114.00 that was incorrectly charged to Reber Company by the bank. On May 31, the bank statement showed an NSF charge of $672.00 for a check issued by Sue Allison, a customer, to Reber Company on account. (a)

Answer 1

Answer
Particulars	Debit	Credit
Cash DR	$     3,374
Misc. expenses / Bank service charges DR	$          28
Note receivable CR		$     3,314
Interest revenue CR		$          88
(To record note receivable) CR
Accounts receivable DR	$        672
Cash CR		$        672
(To record NSF Check)
Cash sales   DR	$          50
Cash CR		$          50
(To record error in deposit)
Accounts payable DR	$        45
Cash CR		$        45
(To record error on check)
Misc. expenses / Bank service charges DR	$          48
Cash CR		$          48
(To record check printing charges)

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