Textbook Problem

Problem 4-603 Bank Reconciliation OBJECTIVE o

The cash account of Mason Prodmsts reveals the following information:

Balance, N30 l0.100

Deposits during May 39.600 40.000 Checks written during May SHD‘I' "E HOW

The bank statement for Ma).r contains the following information:

Bank balance, 480 $ 9,750

Add: Deposits during May 37,400

$ 47,150

Less: Checks paid during May $(38,500)

NSF check from Higgins Inc. (140)

Bank service charges (60) (38,700)

Bank balance, SE31 3 8,450

A comparison of detailed company records with the bank statement indicates the following information:

At #30 Al 5131

Deposit in transit $900 $3, [00

Outstanding checks 550 2,050

The bank amounts are determined to be correct.

Required:

1. Prepare a bank reconciljaLion for May.

2. Prepare the adjusting entries made by Mason Products as a result of the reconciliation process.

3. What amount is reported for cash on the balance sheet at Mar, 3l?