The cash account of the Malpractice Medical Company at May 31, 2019 is $35,670. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the cancelled checks and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $6,440 A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement. The bank collected for Malpractice Medical $5,250 on a note left for collection. The face amount of the note was $5,000 A check for $390 returned with the statement had been incorrectly charged by the bank as $930 A check for #210 returned with the bank statement had been incorrectly recorded by Malpractice Medical as $120. The check was for the payment of an obligation to XYZ Company on account Bank service charges for May amounted to $30 A check for $1,325 from DEF Company was returned by the bank due to insufficient funds Required: Prepare a bank reconciliation as of May 31, 2019 Journalize the necessary adjusting entries
The cash account of the Malpractice Medical Company at May 31, 2019 is $35,670. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the cancelled checks and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $6,440 A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement. The bank collected for Malpractice Medical $5,250 on a note left for collection. The face amount of the note was $5,000 A check for $390 returned with the statement had been incorrectly charged by the bank as $930 A check for #210 returned with the bank statement had been incorrectly recorded by Malpractice Medical as $120. The check was for the payment of an obligation to XYZ Company on account Bank service charges for May amounted to $30 A check for $1,325 from DEF Company was returned by the bank due to insufficient funds Required: Prepare a bank reconciliation as of May 31, 2019 Journalize the necessary adjusting entries
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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The cash account of the Malpractice Medical Company at May 31, 2019 is $35,670. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the cancelled checks and the accompanying memos with the records revealed the following reconciling items:
- Checks outstanding totaled $6,440
- A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement.
- The bank collected for Malpractice Medical $5,250 on a note left for collection. The face amount of the note was $5,000
- A check for $390 returned with the statement had been incorrectly charged by the bank as $930
- A check for #210 returned with the bank statement had been incorrectly recorded by Malpractice Medical as $120. The check was for the payment of an obligation to XYZ Company on account
- Bank service charges for May amounted to $30
- A check for $1,325 from DEF Company was returned by the bank due to insufficient funds
Required:
Prepare a bank reconciliation as of May 31, 2019
Journalize the necessary
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