Question

CALCULATOR FULL SCREEN PRINTER VERSION 4 Problem 7-5A Wildhorse Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company's Cash account per its general ledger showed a balang $6,893.90 The bank statement from Emporia State Bank on that date showed the following balance. Checks and Debits XXX EMPORIA STATE BANK Deposits and Credits XXX Daily Balance 5.31 7.123.00 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 $55.00 for the printing of additional company checks. 2. Cash sales of $898.15 on May 12 were deposited in the bank. The cash recepts journal entry and the deposit slip were incorrectly made for $948.15. The bank credited Wildhorse Co. correct amount Outstanding checks at May 31 totaled $285.25, and deposits in transit were $1,895.15 4. On May 18, the company issued check No. 1181 for $684.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Wildhorse Co 1648.00 5 A $2.860.00 note receivable was collected by the hand for Wildhorse Co. on May 11 through electronic funds transfer 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $345.00 that was incorrectly charged to Wildhorse Co. by the bank. 7. On May 31, the bank statement showed an NSF charge of $535.00 for a check issued by Sara Ballard, a customer, to Wildhorse Co. on account. Prepare the bank reconciliation at May 31, 2017. (List items that increase balance as per bank books first.) WILDHORSE CO Bank Reconciliation

Answer 1

		Bank reconciliation
		May 31,2017
cash balance per bank statement						7,123
Add:
Bank error					345
Deposit in transit					1,895.15
						2,240.15
						9,363.15
less:	Checks outstanding					285.25
Adjusted cash balance as per bank						9,077.90
cash balance as per books						6,893.90
add:	Electronic funds transfer received/note collected					2,860.00
						9,753.90
less:
check printing charge					55
error in deposit					50
error in recording check					36
NSF Check					535
						676
Adjusted cash balance per books						9,077.90
Date	Account titles and Explanations				Debit	Credit
31-May	Cash				2,860.00
	note receivable					2,860.00
31-May	Accounts receivable				535
	cash					535
31-May	sales revenue				50
	cash					50
31-May	Accounts payable				36
	cash					36
31-May	Bank charge expense				55
	cash					55