MBA560 Financial and Managerial Accounting: Module 2 Test Problem 1 - Upton Company
MBA560 Financial and Managerial Accounting Module 2 Test Problem 1.
The May 31, 2012, balance per bank statement for Upton Company was $7,200. The cash balance per books was $9,500. Outstanding checks amounted to $800, and deposits in transit were $2,400. The bank statement contained an NSF check for $500, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175.
Required: 1) Prepare a bank reconciliation to determine the true cash balance at May 31, 2012.