On May 31, 2015, Reber Company had a cash balance per books of $6,890.50. The bank statement from New York State Bank on that date showed a balance of $6,513.60. A comparison of the statement with the Cash account revealed the following facts.
The statement included a debit memo of $45.00 for the printing of additional company checks.
Cash sales of $732.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $782.00. The bank credited Reber Company for the correct amount.
Outstanding checks at May 31 totaled $703.25. Deposits in transit were $2,525.15.
On May 18, the company issued check no. 1181 for $694 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $649.
A $3,109.00 note receivable was collected by the bank for Reber Company on May 31 plus $85.00 interest. The bank charged a collection fee of $25.00. No interest has been accrued on the note.
Included with the cancelled checks was a check issued by Stiner Company to Ted Cress for $909.00 that was incorrectly charged to Reber Company by the bank.
On May 31, the bank statement showed an NSF charge of $675.00 for a check issued by Sue Allison, a customer, to Reber Company on account.
Prepare the bank reconciliation at May 31, 2015. (Enter answers to 2 decimal places, e.g. 15.25. List items that increase cash balance first.)
Prepare the necessary adjusting entries for Reber Company at May 31, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Enter answers to 2 decimal places, e.g. 15.25.)
Account Titles and Explanation
(To record note receivable)
(To record NSF check)
(To record error in deposit)
(To record error on check)
(To record check printing charge)
The information below relates to the Cash account in the ledger of Minton Company.
Balance September 1—$17,435;
Balance September 30—$18,374;
The September bank statement shows a balance of $17,392 on September 30 and the following memoranda.
Collection of $1,977 note plus interest $38
NSF check: Richard Nance
Interest earned on checking account
Safety deposit box rent
At September 30, deposits in transit were $4,935, and outstanding checks totaled $2,868
Prepare the bank reconciliation at September 30. (List items that increase cash balance first.)
Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)