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The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The May 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: Checks outstanding totaled $5,975. a. b. A deposit of $3,796 had been made too late to appear on the bank statement. A check for $1,482 returned with the statement had been incorrectly recorded by the company 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. Bank service charges for May amounted to $70. e. check for $894 was returned by the bank because of insufficient funds. a. Prepare a bank reconciliation as of May 31

The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The May 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: Checks outstanding totaled $5,975. a. b. A deposit of $3,796 had been made too late to appear on the bank statement. A check for $1,482 returned with the statement had been incorrectly recorded by the company 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. Bank service charges for May amounted to $70. e. check for $894 was returned by the bank because of insufficient funds. a. Prepare a bank reconciliation as of May 31

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 4PB
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Total adjustments Adjusted balance b. Journalize the necessary entries. Record the entry to increase cash first. If an amount box does not require an entry, leave it blank. May 31 31
Transcribed Image Text:Total adjustments Adjusted balance b. Journalize the necessary entries. Record the entry to increase cash first. If an amount box does not require an entry, leave it blank. May 31 31
The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The May 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: Checks outstanding totaled $5,975. deposit of $3,796 had been made too late to appear on the bank statement. A check for $1,482 returned with the statement had been incorrectly recorded by the company as $482. The check was originally issued to a. C. 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. a. Prepare a bank reconciliation as of May 31. Santiago Co. Bank Reconciliation May 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance
Transcribed Image Text:The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The May 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: Checks outstanding totaled $5,975. deposit of $3,796 had been made too late to appear on the bank statement. A check for $1,482 returned with the statement had been incorrectly recorded by the company as $482. The check was originally issued to a. C. 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. a. Prepare a bank reconciliation as of May 31. Santiago Co. Bank Reconciliation May 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance
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