ACC 400 Week 1 E-text Individual Assignments

Week 1: E-text Individual Assignments 
Financial Accounting: Tools for Business Decision Making, 4th edition
 
Chapter 7: Problem Set B: P7-3B
 
a)      Prepare the bank reconciliation as of May 31, 2007.
 





GALENTI COMPANY




Bank Reconciliation




May 31, 2007




Cash balance per bank statement

 

$7,964.60




Add:


Deposits in transit


$836.15

 


 

Bank error - Gallen Company check


290.00


1,126.15



 

9,090.75




Less:


Outstanding checks

 

806.25




Adjusted cash balance per bank

 

$8,284.50



 



Cash balance per books

 

$5,681.50




Add:


Collection of note receivable

 

3,050.00



 

($3,000 + $80 interest – $30 collection fee)

 

8,731.50



 



Less:


NSF check - K. Uzong


$340.00

 


 

Error in May 12 deposit


10.00

 


 

Error in recording check No. 1181


27.00

 


 

Check printing charge


70.00


447.00




Adjusted cash balance per books

 

$8,284.50




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