The cash transactions and cash balances of ABC Company for May were as follows: 1. The ledger account for cash showed a balance at May 31 of $16766.95. 2. The May bank statement showed a closing balance of $ 18928.12. 3. The received on May 31 amounted to $4017.15. it was left at the bank in the night depository chute after banking hours on May 31 and therefore was not recorded by the bank on the May statement. 4. A debit memorandum from the bank for $7.65 representing service charges for May included in May bank statement. 5. A credit memorandum enclosed with the May bank statement indicated that a non-interest bearing note receivable for $4545 from J’s company had been collected and the proceeds credited to the account of ABC Company. 6. Comparison of the paid checks returned by the bank with the entries in the accounting records revealed that check no. 800 for $835.02, issued May 14 in payment for office equipment, and had been erroneously entered in ABC company records as $853.02. 7. Examination of the paid checks also revealed that three checks, all issued in May, and had not yet been paid by the bank: no. 801 for $861.12, no. 804 for $640.80, no. 803 for $301.05. 8. Included with bank statement of May was a $180 check drawn by Ali. A customer of ABC Company. This check was marked as NSF. It had been included in the deposit of May 20 but had been charged back against the company’s account on May 31. Required: a. Prepare a bank reconciliation statement for ABC Company at May 31. b. Prepare journal entries as required.
The cash transactions and cash balances of ABC Company for May were as follows:
1. The ledger account for cash showed a balance at May 31 of $16766.95.
2. The May bank statement showed a closing balance of $ 18928.12.
3. The received on May 31 amounted to $4017.15. it was left at the bank in the night depository chute after banking hours on May 31 and therefore was not recorded by the bank on the May statement.
4. A debit memorandum from the bank for $7.65 representing service charges for May included in May bank statement.
5. A credit memorandum enclosed with the May bank statement indicated that a non-interest bearing note receivable for $4545 from J’s company had been collected and the proceeds credited to the account of ABC Company.
6. Comparison of the paid checks returned by the bank with the entries in the accounting records revealed that check no. 800 for $835.02, issued May 14 in payment for office equipment, and had been erroneously entered in ABC company records as $853.02.
7. Examination of the paid checks also revealed that three checks, all issued in May, and had not yet been paid by the bank: no. 801 for $861.12, no. 804 for $640.80, no. 803 for $301.05.
8. Included with bank statement of May was a $180 check drawn by Ali. A customer of ABC Company. This check was marked as NSF. It had been included in the deposit of May 20 but had been charged back against the company’s account on May 31.
Required:
a. Prepare a
b. Prepare
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