Question

Required information (The following information applies to the questions displayed below.] The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T-account for cash (summarized). Martin Company's bank reconciliation at the end of April showed a cash balance of $20,600. No deposits were in transit at the end of April, but a deposit was in transit at the end of May. BANK STATEMENT Checks Deposits Other $ 8,000 #301 $11,000 #302 6,800 10,000 Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17 May 22 May 27 May 31 Balance, May 31 #303540 Balance $ 20,600 28,600 17,600 10,800 20,800 20,260 20, 420 20, 100 15,100 15,020 15,020 $160 Interest NSF check 320 #304 5,000 Service charge 80 May 1 Balance May 1 May 7 May 29 Cash (A) 20,600 8,000 10,000 6,800 11,000 6,800 540 5,000 1,700 #301 May 2 #302 May 4 #303 May 11 #304 May 23 #305 May 29 May 31 Balance 20, 360

Answer 1

	MARTIN COMPANY
	Bank Reconciliation
	At May 31
Bank statement			Company's Books
Ending balance per bank statement		15020	Ending balance per cash account		20360
Additions:			Additions:
Deposit in transit	6800		Interest earned	160
		6800			160
		21820			20520
Deductions:			Deductions:
Outstanding checks	1700		Bank service charge	80
			NSF check	320
		1700			400
Up-to-date cash balance		20120	Up-to-date cash balance		20120