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 $20,100. 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 6,600 10,080 Balance $ 20,100 28, 109 17, 180 10,500 20,500 19,970 20,120 19,810 14,919 14,835 14,835 #383 Balance, May 1 May 2 May 5 May 7 May 8 May 14 May 17 May 22 May 27 May 31 Balance, May 31 530 Interest NSF check $150 310 #384 4,900 Service charge 75 May 1 Balance May 1 May 7 May 29 Cash (A) 20,180 8,000 10,000 6,600 11,000 6,600 530 4,900 1,600 #301 May 2 #302 May 4 #303 May 11 #304 May 23 #305 May 29 May 31 Balance 20,870 < Prey 4 5 6 of 6 !!! Next >

Answer 1

Martin Company Bank Reconciliation At May 31 Company's Book 14,835 Ending Balance per Cash Account Additions: 6,600 Interest earned $ $ Bank Statement Ending Balance per Bank Statement Additions: Deposit in transit 20,070 $ $ 150 $ $ 20,220 Deductions: Outstanding checks 21,435 Deductions: 1,600 NSF check Bank service charge $ 310 $ $ 75 $ $ $ Up-to-Date Cash Balance 385 19,835 19,835 Up-to-Date Cash Balance