The cash acco n for Santiago Co. on May 31 m cated a balance of $20 915 e March

Question

The cash acco n for Santiago Co. on May 31 m cated a balance of $20 915 e March bank state e indacated an ending balance of S25645 Con pa ng he bank state ant he canceled e e n and the ac pa yang memes wita tare oras re aa ed t e fel ng con ng tens a. Checks outstanding totaled $5,975 b. A deposit of $3,796 had baan mada too late to appaar on tha bank statamert c. A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account d. The bank collected $4,315 on a note left for collection of mihich $313 mas interest revenue e. Bank service charges for May amounted to $70. . A cback for $894 was rstumad by tha bank because of insafficiont funds Prepare a bank reconciliation as of May 31. Joumalize the necessary entrias. Santiago Co May 31 Journal Date Description Debit Credit

Explanation / Answer

Bank Reconciliation May 31 Cash balance according to bank statement 25645 Add: Deposits not recorded by bank 3796 29441 Deduct: Outstanding Check 5975 Adjusted balance 23466 Cash balance according to company’s records 20915 Add: Proceeds of note collected by bank 4515 25430 Deduct: Error in recording check 1000 Bank service charges 70 Nonsufficient funds check 894 Adjusted balance 23466 May 31       Cash 4515                           Note Receivable 4000                           Interest Revenue 515 31              Accounts Payable 1000                   Bank Service Charge Expense 70                  Accounts Receivable 894                  Cash 1964

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