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Peterson Company's general ledger shows a cash balance of $7,520 on May 31. May cash receipts of $1,290, included i ledger balance, are placed in the night depository at the bank on May 31 and processed by the bank on June 1. The bar dated May 31 shows an NSF check from a customer for $160 and a service fee of $70. The bank processes all checks w company by May 31 and lists them on the bank statement, except for one check totaling $1,850. The bank statement sh of $7,850 on May 31. Required: Prepare a bank reconciliation to calculate the correct balance of cash on May 31. (Amounts to be deducted should be a minus sign.) Bank's Cash Balance Per bank statement Bank balance per reconciliation PETERSON COMPANY Bank Reconciliation May 31 Company's Cash Balance Per general ledger Company balance per reconciliation

Peterson Company's general ledger shows a cash balance of $7,520 on May 31. May cash receipts of $1,290, included i ledger balance, are placed in the night depository at the bank on May 31 and processed by the bank on June 1. The bar dated May 31 shows an NSF check from a customer for $160 and a service fee of $70. The bank processes all checks w company by May 31 and lists them on the bank statement, except for one check totaling $1,850. The bank statement sh of $7,850 on May 31. Required: Prepare a bank reconciliation to calculate the correct balance of cash on May 31. (Amounts to be deducted should be a minus sign.) Bank's Cash Balance Per bank statement Bank balance per reconciliation PETERSON COMPANY Bank Reconciliation May 31 Company's Cash Balance Per general ledger Company balance per reconciliation

College Accounting (Book Only): A Career Approach
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 5E
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Peterson Company's general ledger shows a cash balance of $7,520 on May 31. May cash receipts of $1,290, included in the general ledger balance, are placed in the night depository at the bank on May 31 and processed by the bank on June 1. The bank statement dated May 31 shows an NSF check from a customer for $160 and a service fee of $70. The bank processes all checks written by the company by May 31 and lists them on the bank statement, except for one check totaling $1,850. The bank statement shows a balance of $7,850 on May 31. Required: Prepare a bank reconciliation to calculate the correct balance of cash on May 31. (Amounts to be deducted should be indicated with a minus sign.) Bank's Cash Balance Per bank statement Bank balance per reconciliation PETERSON COMPANY Bank Reconciliation May 31 Company's Cash Balance Per general ledger Company balance per reconciliation
Transcribed Image Text:Peterson Company's general ledger shows a cash balance of $7,520 on May 31. May cash receipts of $1,290, included in the general ledger balance, are placed in the night depository at the bank on May 31 and processed by the bank on June 1. The bank statement dated May 31 shows an NSF check from a customer for $160 and a service fee of $70. The bank processes all checks written by the company by May 31 and lists them on the bank statement, except for one check totaling $1,850. The bank statement shows a balance of $7,850 on May 31. Required: Prepare a bank reconciliation to calculate the correct balance of cash on May 31. (Amounts to be deducted should be indicated with a minus sign.) Bank's Cash Balance Per bank statement Bank balance per reconciliation PETERSON COMPANY Bank Reconciliation May 31 Company's Cash Balance Per general ledger Company balance per reconciliation
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