SUMMARY OF THE VARIOUS RECONCILING ITEMS
BANK BALANCE BOOK BALANCE
Add deposits in transit Add bank collections, interest revenue and EFT
Subtract outstanding cheques receipts
Add or subtract corrections of bank errors Subtract service charges, NSF cheques and EFT
payments
Add or subtract corrections of book errors
Poorten Company’s bank statement for May 2024 shows the following data.
Balance 5/1 $12,650 Balance 5/31 $14,280
Debit memorandum: Credit memorandum:
NSF check $175 Collection of note receivable $505
The cash balance per books at May 31 is $13,319. Your review of the data reveals the following.
1. The NSF check was from Copple Co., a customer.
2. The note collected by the bank was a $500, interest revenue $15. The bank charged a $10
collection fee.
3. Outstanding checks at May 31 total $2,410.
4. Deposits in transit at May 31 total $1,752.
5. A Poorten Company check for $352, dated May 10, cleared the bank on May 25. The company
recorded this check, which was a payment on account, for $325.
Instructions
(a) Prepare a bank reconciliation at May 31.
(b) Journalize the entries required by the reconciliation.
The following information pertains to Crane Video Company.
1. Cash balance per bank, July 31, $7,263.
2. July bank service charge not recorded by the depositor $28.
3. Cash balance per books, July 31, $7,284.
4. Deposits in transit, July 31, $1,300.
5. Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The collection has not
been recorded by Crane, and no interest has been accrued.
6. Outstanding checks, July 31, $591.
Instructions
(a) Prepare a bank reconciliation at July 31.
(b) Journalize the adjusting entries at July 31 on the books of Crane Video Company.
On May 31, 2024, Reber Company had a cash balance per books of $6,781.50. The bank statement
from New York State Bank on that date showed a balance of $6,404.60. A comparison of the
statement with the Cash account revealed the following facts.
1. The statement included a debit memo of $40 for printing additional company checks.
2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and
the deposit slip were incorrectly made for $886.15. The bank credited Reber Company for the correct
amount.
3. Outstanding checks at May 31 totalled $576.25. Deposits in transit were $2,416.15.
4. On May 18, the company issued check No. 1181 for $685 to Lynda Carsen on account. The check,
which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $658.
5. A $3,000 note receivable was collected by the bank for Reber Company on May 31 plus 80 interest.
The bank charged a collection fee of $20. No interest has been accrued on the note.
6. Included with the cancelled checks was a check issued by Stiner Company to Ted Cress for $800
that was incorrectly charged to Reber Company by the bank.
7. On May 31, the bank statement showed an NSF charge of $680 for a check issued by Sue Allison, a
customer, to Reber Company on account.
Instructions
(a) Prepare the bank reconciliation on May 31, 2024.
(b) Prepare the adjusting entries for Reber Company on May 31, 2024.
