On May 31, 2017, Reber Company had a cash balance per books of $6,781.50. The ba

Question

On May 31, 2017, Reber Company had a cash balance per books of $6,781.50. The bank statement from New York State Bank on that date showed a balance of $6,404.60. A comparison of the statement with the cash account revealed the following facts.

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(Answer the in these two formats):

1. The statement included a debit memo of $40.00 for the printing of additional company checks. 2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks at May 31 totaled $576.25. Deposits in transit were $2,416.15. 4. On May 18, the company issued check No. 1181 for $685 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $658. 5. A $3,000.00 note receivable was collected by the bank for Reber Company on May 31 plus $80.00 interest. The bank charged a collection fee of $20.00. 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 $800.00 that was incorrectly charged to Reber Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $680.00 for a check issued by Sue Allison, a customer, to Reber Company on account.

Explanation / Answer

RECONCILIATION STATEMENT Cash balance as peer bank Statement 6404.6 Adjustment: Add: Deposits in transit 2416.15 Less: Outstanding checks -576.25 Ad: bank Error Stiner check 800 Adjusted cash balance as pere Bank 9044.5 Cash balance as per Books 6781.5 Adjustment: Less: Check printing charges -40 Less: Error in May12 -50 Less: Error in recording check no. 1181 -27 Add: Collection of note 3060 Les: NSF check -680 Adjusted cash balance as per books 9044.5 JOURNAL ENTRIES: DATE Accounts title Debit $ Credit $ 31-May Cash Account Dr. 3060 Collection expense Dr. 20     Notes receivable 3000     Interest revenue 80 (ffor notes receivable) 31-May Accounts receivable Dr. 680    Cash Account 680 (for NSF check) 31-May Sales revenue Dr. 50    Cash Account 50 (for recording the erro n may12) 31-May Accounts payable Dr. 27    Cash Account 27 (for recording the error in check 1181) 31-May Service charges expense Dr. 40     Cash 40 (for check prinitn g charges)

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