The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The March bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:a.Checks outstanding totaled $5,975.b.A deposit of $3,796 had been made too late to appear on the bank statement.c.A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account.d.The bank collected $4,515 on a note left for collection of which $515 was interest revenue.e.Bank service charges for May amounted to $70.f.A check for $894 was returned by the bank because of insufficient funds. Required: Prepare a bank reconciliation as of May 31. Journalize the necessary entries. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:”, “Add:” or “No.” will automatically appear if it is required. Enter all amounts as positive values. Refer to the Chart of Accounts for exact wording of account titles.

Prepare a bank reconciliation as of May 31:

Answered: Prepare a bank reconciliation as of May…

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 indicated a balance of $20,915. The March bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

a.	Checks outstanding totaled $5,975.
b.	A deposit of $3,796 had been made too late to appear on the bank statement.
c.	A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account.
d.	The bank collected $4,515 on a note left for collection of which $515 was interest revenue.
e.	Bank service charges for May amounted to $70.
f.	A check for $894 was returned by the bank because of insufficient funds.

	Required:
	Prepare a bank reconciliation as of May 31. Journalize the necessary entries. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:”, “Add:” or “No.” will automatically appear if it is required. Enter all amounts as positive values. Refer to the Chart of Accounts for exact wording of account titles.

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