Problem - Solving Financial Accounting Problems Using Microsoft Excel for Windows

Prepare a bank reconciliation and adjusting entries.

On May 31, 2010, Lombard Company had a cash balance per books of $5,681.50. The bank statement from Community Bank on that date showed a balance of $7,964.60. A comparison of the statement

1. The Statement included a debit memo of $70 for the printing of additional company checks

2. Cash sales of $786.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $796.15. The bank credited Lombard Company for the correct amount.

3. Outstanding checks at May 31 totaled $1,106.25, and depositing in transit war $836.15.

4. On May 18, the company issued check #1181 for $685 to North Habben, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Lombard Company for $658.

5. A $2,500 note receivable was collected by the bank for Lombard Company on May 31 plus interest. The Bank charged a collection fee of $30. No interest has been accrued on the note.

6. Included with the cancelled checks was a check issued by Lonshed Company to C. Young for $290 that was incorrectly charged to Lombard Company by the bank.'

7. On May, 31 the bank statement showed an NSF charge of $140 for a check issued by K. Uzong, a customer, to Lombard Company on account.

A. Prepare the bank reconciliation as of May 31, 2011.

B. Pre Pare the necessary adjusting entries at May 31, 2011.