The May 31 balance per bank statement was $12,400. The unadjusted book balance was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a debit memo for direct payment of the telephone bill of $350 (which has not yet been recorded by the company).
Required:a)Determine the true cash balance by preparing a bank reconciliation as of May 31.

Question

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The Answer of The May 31 balance per bank statement was $12,400. The unadjusted book balance was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a debit memo for direct payment of the telephone bill of $350 (which has not yet been recorded by the company).
Required:a)Determine the true cash balance by preparing a bank reconciliation as of May 31.

The May 31 Balance Per Bank Statement Was $12,400