Exercise 7-9 (Part Level Submission) The bookkeeper for Blossom Manufacturing Lt

Question

Exercise 7-9 (Part Level Submission) The bookkeeper for Blossom Manufacturing Ltd. was trying to determine what items would be used in preparing the company's bank reconciliation that she is completing at May 31, 2018, which was the company's first month of operations. The company's bank statement showed the following: BLOSSOM MANUFACTURING LTD Bank Statement May 31 Amounts Deducted from Amounts Added to Account Description bits) (Credits) Balance 24,000 24,000 22,460 15,410 4,700 20,110 12,550 11,490 10,080 10,056 8,066 5,996 5,954 Date Account (De May Deposit 1,540 7,050 3 Cheque, No. 001 5 Cheque, No. 002 15 Deposit 19 Cheque, No. 004 21 Cheque, No. 006 25 Returned cheque-NSF, S. Gillis 25 NSF fee 27 Cheque, No. 009 28 Cheque, No. 010 31 Bank service charges 7,560 1,060 1,410 24 1,990 2,070 42 Blossom's cash receipts summary (which were all deposited) and cheque summary (which were all mailed out to suppliers) for the month of May showed the following: Cash Receipts Cash Payments Amount $24,000 4,700 7,400 $36,100 Number Amount $1,540 7,050 1,560 7,560 370 1,060 2,100 560 1,990 2,070 $25,860 Date Date May 1 15 31 May 2 00 3 002 14 003 15 004 18 005 19 006 22 007 23 008 25 009 26 010

Explanation / Answer

Deposit in transit of May 31 - $7,400

(if you check the credit side of bank account - that is amounts added to account and cash receipts side in the books you will see that $7,400 is the amount does not appear in bank statement.)

Deposit in transit of May 31 - $7,400

(if you check the credit side of bank account - that is amounts added to account and cash receipts side in the books you will see that $7,400 is the amount does not appear in bank statement.)

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