On May 31, 2015, Reber Company had a cash balance per books of $7,117.50. The ba

Question

On May 31, 2015, Reber Company had a cash balance per books of $7,117.50. The bank statement from New York State Bank on that date showed a balance of $6,740.60. 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 $831.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $881.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $930.25. Deposits in transit were $2,752.15. 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 $3,336.00 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 $1,136.00 that was incorrectly charged to Reber Company by the bank. 7. 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.

Explanation / Answer

Cash balance per books                  $7,117.50
- printing of additional checks                 $48
- error correction for cash sales              $50
- error correction for check No. 1181      $45
+ note receivable collected               $3,336
+ interest collected                                $88
- collection fee                                        $28
- NSF check                                         $672
Adjusted cash book balance           $9,698.50

Bank statement balance                $6,740.60
- Outstanding checks                         $930.25
+ Deposits in transit                        $2,752.15.
+ error correction                           $1,136.00
Adjusted bank statement bal.         $9,698.50

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