On May 31, 2017, Reber Company had a cash balance per books of $7,281.50. The ba

Question

On May 31, 2017, Reber Company had a cash balance per books of $7,281.50. The bank statement from New York State Bank on that date showed a balance of $6,904.60. A comparison of the statement with the cash account revealed the following facts.

On May 31, the bank statement showed an NSF charge of $671.00 for a check issued by Sue Allison, a customer, to Reber Company on account.

Prepare the bank reconciliation at May 31, 2017. (Round answers to 2 decimal places, e.g. 52.75. List items that increase cash balance first. Reconcile cash balance per bank first.)

REBER COMPANY
Bank Reconciliation
May 31, 2017

1. The statement included a debit memo of $49.00 for the printing of additional company checks. 2. Cash sales of $933.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $983.00. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $1,067.25. Deposits in transit were $2,916.15. 4. On May 18, the company issued check No. 1181 for $664 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $646. 5. A $3,500.00 note receivable was collected by the bank for Reber Company on May 31 plus $89.00 interest. The bank charged a collection fee of $29.00. 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 $1,300.00 that was incorrectly charged to Reber Company by the bank. 7.

On May 31, the bank statement showed an NSF charge of $671.00 for a check issued by Sue Allison, a customer, to Reber Company on account.

Explanation / Answer

REBER COMPANY Bank Reconciliation For the month ended May 31, 2017 Cash balance as per bank statement $    6,905 Less: Outstanding checks $    1,067 Add:   Deposit in transit $ 2,916 Bank error - Stiner check $ 1,300 $    4,216 Adjusted bank balance $ 10,054 Cash balance according to company's record $    7,282 Add:Collection of note receivable ($3,500+$89-$29) $    3,560 Less Check printing charge $        49 Error in May 12 Deposit $        50 Error in recoridng Check No. 1181 $        18 NSF Check $     671 $        788 Adjusted Cash balance $ 10,054

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