Acc280 Financial Accounting: AP8-3A On May 31, 2008, James Logan Company

Note: This is an ALTERNATIVE PROBLEM to the original in the textbook (meaning, the amounts are different). Please review and compare our tutorial with your homework and make sure this is what you need.

Acc280 Financial Accounting
AP8-3A
On May 31, 2008, James Logan Company had a cash balance per books of $6,742.80. The bank statement from Farmers State Bank on that date showed a balance of $6,736.70. A comparison of the statement with the cash account revealed the following facts.
1. The statement included a debit memo of $37.23 for the printing of additional company checks.
2. Cash sales of $838.25 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $888.25. The bank credited Logan Company for the correct amount.
3. Outstanding checks at May 31 totaled $629.13. Deposits in transit were $1,835.12.
4. On May 18, the company issued check No. 1181 for $985 to Barry Trest, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Logan Company for $958.
5. A $2,677 note receivable was collected by the bank for Logan Company on May 31 plus $84.89 interest. The bank charged a collection fee of $21.73. No interest has been accrued on the note.
6. Included with the cancelled checks was a check issued by Bridgetown Company to Tom Lujak for $728.72 that was incorrectly charged to Logan Company by the bank.
7. On May 31, the bank statement showed an NSF charge of $697.32 for a check issued by Sandy Grifton, a customer, to Logan Company on account.

Instructions:
a)Complete the bank reconciliation at May 31, 2008. (List amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50. Enter all amounts as positive amounts and subtract where necessary.)
b)Prepare the necessary adjusting entries for Logan Company at May 31, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)
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