The cash account for Santiago Co. on May 31, 2021 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $4,820.00 b. A deposit of $3,796.00 had been made too late to appear on the bank statement. c. A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally for a vendor payment on account. d. The bank collected $5,541.00 on a note left for collection. e. Bank service charges for May amounted to $45.00. f. A check for $790.00 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31, 2021. Journalize the necessary entries.
The cash account for Santiago Co. on May 31, 2021 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $4,820.00 b. A deposit of $3,796.00 had been made too late to appear on the bank statement. c. A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally for a vendor payment on account. d. The bank collected $5,541.00 on a note left for collection. e. Bank service charges for May amounted to $45.00. f. A check for $790.00 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31, 2021. Journalize the necessary entries.
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 1PB
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- The cash account for Santiago Co. on May 31, 2021 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
|
a. |
Checks outstanding totaled $4,820.00 |
|
b. |
A deposit of $3,796.00 had been made too late to appear on the bank statement. |
|
c. |
A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00. The check was originally for a vendor payment on account. |
|
d. |
The bank collected $5,541.00 on a note left for collection. |
|
e. |
Bank service charges for May amounted to $45.00. |
|
f. |
A check for $790.00 was returned by the bank because of insufficient funds. |
Prepare a bank reconciliation as of May 31, 2021. Journalize the necessary entries.
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