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stiks02 [169]
3 years ago
7

Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the clos

e of business on May 31, Its Cash account shows a $27,900 debit balance. The company's May 31 bank statement shows $26,200 on deposit in the bank. a. The May 31 bank statement lists $120 in bank service charges; the company has not yet recorded the cost of these services b. Outstanding checks as of May 31 total $5,800. c. May 31 cash receipts of $6,400 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement. d. In reviewing the bank statement, a $420 check written by Smith Company was mistakenly drawn against Wright's account. e. The bank statement shows a $560 NSF check from a customer; the company has not yet recorded this NSF check. Prepare a bank reconciliation for the company using the above information.
Engineering
1 answer:
alina1380 [7]3 years ago
8 0

Answer:

                                              Wright Company

                                             Bank Reconciliation

                                                 May 31, 2013

Credit side                                                                                   Debit side

Bank statement $26200                 |                          Book balance $27900

<em>Add;                                                    </em>

Deposit on May 31 $6400

Bank error $420

Sub-total=$33020

Deductions;                                        |                       Deduct

ions

Outstanding checks $5800              |                 Bank service charge $120

Adjusted bank balance $27220       |                  NSF check $560

                                                                             Total deduction $680

                                                      Adjusted book balance $27220

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