The May 31 balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a debit memo for direct payment of the telephone bill of $350. Required: a. Prepare a bank reconciliation to determine the true cash balance at May 31 b. Indicate how each of the required adjusting entries impact the financial statements.
The May 31 balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a debit memo for direct payment of the telephone bill of $350. Required: a. Prepare a bank reconciliation to determine the true cash balance at May 31 b. Indicate how each of the required adjusting entries impact the financial statements.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 4PA
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Transcribed Image Text:18
The May 31 balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to
$1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a
debit memo for direct payment of the telephone bill of $350.
Required:
a.
Prepare a bank reconciliation to determine the true cash balance at May 31.
b. Indicate how each of the required adjusting entries impact the financial statements.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Indicate how each of the required adjusting entries impact the financial statements.
Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.
Outstanding checks
Horizontal Statements Model
Balance Sheet
Income Statement
Item
Assets
Liabilities
Cash
Accounts
Receivables
Stockholders'
Equity
Revenue
Expenses
Net
Income
Statement of
Cash Flows
(1.700)
4.800
Deposits in transe
NSF check from a customer
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