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Problem 8-3A On May 31, 2014, Reber Company had a cash balance per books of $6,942.50. The bank statement from New York State Bank on that date showed a balance of $6,565.60. A comparison of the statement with the cash account revealed the following facts.

1. The statement included a debit memo of $50.00 for the printing of additional company checks. 2. Cash sales of $835.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $885.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $773.25. Deposits in transit were $2,577.15. 4. On May 18, the company issued check No. 1181 for $692 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $629. 5. A $3,161.00 note receivable was collected by the bank for Reber Company on May 31 plus $90.00 interest. The bank charged a collection fee of $30.00. 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 $961.00 that was incorrectly charged to Reber Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $670.00 for a check issued by Sue Allison, a customer, to Reber Company on account.

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Ok            Cancel        On May 31, 2014, Reber Company had a cash balance per books of $6,942.50. The bank statement from New York State Bank on that date showed a balance of $6,565.60. A comparison of the statement with the cash account revealed the following facts. The statement included a debit memo of $50.00 for the printing of additional company checks. Cash sales of $835.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $885.00. The bank credited Reber Company for the correct amount. Outstanding checks at May 31 totaled $773.25. Deposits in transit were $2,577.15. On May 18, the company issued check No. 1181 for $692 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $629. A $3,161.00 note receivable was collected by the bank for Reber Company on May 31 plus $90.00 interest. The bank charged a collection fee of $30.00. No interest has been accrued on the note. Included with the cancelled checks was a check issued by Stiner Company to Ted Cress for $961.00 that was incorrectly charged to Reber Company by the bank. On May 31, the bank statement showed an NSF charge of $670.00 for a check issued by Sue Allison, a customer, to Reber Company on account.

Explanation / Answer

CASH BALANCE AS PER BOOKS = 6942.50

ADJUSTMENTS

1]LESS: debit memo of $50.00 for the printing of additional company checks.=(50)

2]LESS:INCORRECT RECORD[885-835] = (50)

3]a)ADD:OUTSTANDING CHEQUES = 773.25

b) LESS:-DEPOSITS IN TRANSIT = (2577.15)

4]LESS:INCORRECT RECORD[692-629] = (63)

5]a)ADD:-NOTE RECEIVABLE RECEIVED WITH INTEREST ON BEHALF OF COMPANY[3161+90] = 3251

b)LESS:-BANK COLLECTION CHARGES = (30)

6]LESS:INCORRECT CANCELLED CHEQUE MISTAKE = (961)

7]LESS:NSF CHEQUE = (670)

BANK BALANCE AS PER BANK STATEMENT = 6565.60

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