The May 31,2016,balance per bank statement was $12,400.The cash balance per books 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.
Required: a)Prepare a bank reconciliation to determine the true cash balance at May 31,2016.
b)Prepare any necessary journal entries.

Question

Quizplus · Accepted Answer

The Answer of The May 31,2016,balance per bank statement was $12,400.The cash balance per books 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.
Required: a)Prepare a bank reconciliation to determine the true cash balance at May 31,2016.
b)Prepare any necessary journal entries.

The May 31,2016,balance Per Bank Statement Was $12,400