Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company’s Cash account per its general ledger showed a balance of $7,407.00. The bank statement from Emporia State Bank on that date showed the following balance. Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 8,318.40 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $801.20 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $851.20. The bank credited Timmins Company for the correct amount. 3. Outstanding checks at May 31 totaled $906.70, and deposits in transit were $1,820.30. 4. On May 18, the company issued check No. 1181 for $694 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $649. 5. $2,800 was collected by the bank for Timmins Company on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $460 that was incorrectly charged to Timmins Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $380 for a check issued by Sara Ballard, a customer, to Timmins Company on account

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 9EA: Using the following information, prepare a bank reconciliation. Bank balance: $4,587 Book balance:...

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Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company’s Cash account per its general ledger showed a balance of $7,407.00.
The bank statement from Emporia State Bank on that date showed the following balance.

Emporia State Bank
Checks and Debits	Deposits and Credits	Daily Balance
XXX	XXX	5-31	8,318.40

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

1.		The statement included a debit memo of $40 for the printing of additional company checks.
2.		Cash sales of $801.20 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $851.20. The bank credited Timmins Company for the correct amount.
3.		Outstanding checks at May 31 totaled $906.70, and deposits in transit were $1,820.30.
4.		On May 18, the company issued check No. 1181 for $694 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $649.
5.		$2,800 was collected by the bank for Timmins Company on May 31 through electronic funds transfer.
6.		Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $460 that was incorrectly charged to Timmins Company by the bank.
7.		On May 31, the bank statement showed an NSF charge of $380 for a check issued by Sara Ballard, a customer, to Timmins Company on account.