aughn Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company’s Cash account per its general ledger showed a balance of $6,000.00. The bank statement from Emporia State Bank on that date showed the following balance. Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 7,008.00 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $50 for the printing of additional company checks. 2. Cash sales of $922.64 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $972.64. The bank credited Vaughn Company for the correct amount. 3. Outstanding checks at May 31 totaled $775.45, and deposits in transit were $1,633.45. 4. On May 18, the company issued check No. 1181 for $671 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Vaughn Company for $617. 5. $2,900 was collected from a customer’s note receivable by the bank for Vaughn Company on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $460 that was incorrectly charged to Vaughn Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $420 for a check issued by Sara Ballard, a customer, to Vaughn Company on account. (a) Prepare the bank reconciliation at May 31, 2022. (List items that i
Vaughn Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company’s Cash account per its general ledger showed a balance of $6,000.00. The bank statement from Emporia State Bank on that date showed the following balance.
Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 7,008.00
A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.
1. The statement included a debit memo of $50 for the printing of additional company checks.
2. Cash sales of $922.64 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $972.64. The bank credited Vaughn Company for the correct amount.
3. Outstanding checks at May 31 totaled $775.45, and deposits in transit were $1,633.45.
4. On May 18, the company issued check No. 1181 for $671 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Vaughn Company for $617.
5. $2,900 was collected from a customer’s note receivable by the bank for Vaughn Company on May 31 through electronic funds transfer.
6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $460 that was incorrectly charged to Vaughn Company by the bank.
7. On May 31, the bank statement showed an NSF charge of $420 for a check issued by Sara Ballard, a customer, to Vaughn Company on account.
(a) Prepare the bank reconciliation at May 31, 2022. (List items that increase cash balance first.)
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