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.
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 canceled 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.Prepare the necessary adjusting entries for Reber Company at May 31, 2017. (Enter answers to 2 decimal places, e.g., 15.25. Record journal entries in the order presented in the problem.)

Answer 1

Bank reconciliation statement can be defined as a statement of account in which the bank balance as per company's accounting records is compared with the balance shown in the bank statement.

A.

Reber Company Bank Reconciliation

May 31, 2017

Cash balance per bank statement$ 6,404.60

Add: Depost in transit$ 2,416.15

Bank error 800.00

Less: Outstanding checks576.25

Adjusted cash balance per bank 9,044.50

Cash balance per books$ 6,781.50

Add:Collection of Note Receivable 3,060.00

Less: NSF check 680.00

Error on deposit 50.00

Error in check recording 27.00

Check printing charge 40.00

Adjusted cash balance per books9,044.50

B.

May31

Dr Cash3,060.00

Dr Misc Expense20.00

Cr Notes Receivable 3,000.00

Cr Interest Revenue 80.00

May 31

Dr Accounts Receivable 680.00

Cr Cash 680.00

May 31

Dr Sales Revenue 50.00

Cr Cash 50.00

May 31

Dr Accounts Payable 27.00

Cr Cash 27.00

May 31

Dr Misc Expense 40.00

Cr Cash 40.00