The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The March bank statement indicated an ending balance
of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $5,975.
b. A deposit of $3,796 had been made too late to appear on the bank statement.
c. A check for $1,482 returned with the statement had been incorrectly recorded by the company as $482. The check was originally issued to pay on account.
d. The bank collected $4,515 on a note left for collection of which $515 was interest revenue.
e. Bank service charges for May amounted to $70.
f. A check for $894 was returned by the bank because of insufficient funds.
Required :
Prepare a bank reconciliation as of May 31. Journalize the necessary entries.
a. Checks outstanding totaled $5,975.
b. A deposit of $3,796 had been made too late to appear on the bank statement.
c. A check for $1,482 returned with the statement had been incorrectly recorded by the company as $482. The check was originally issued to pay on account.
d. The bank collected $4,515 on a note left for collection of which $515 was interest revenue.
e. Bank service charges for May amounted to $70.
f. A check for $894 was returned by the bank because of insufficient funds.
Required :
Prepare a bank reconciliation as of May 31. Journalize the necessary entries.
1 answer:
Answer:
See attached picture
Explanation:
Bank statement is a statement prepared by bank. The company also, maintains its own records. This is the reason the cash balance per bank and cash balance per books seldom agree.
Bank reconciliation is the statement prepared by companies to remove disagreement between cash balance per bank and cash balance per books.
In here we are to calculate bank reconciliation for Satiango co.
Below are the attached picture. But, in this case the adjusted balance as per bank is not equal to the adjusted balance per books.
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