Problem 8-3A
On May 31, 2014, Reber Company had a cash balance per books of $7,167.50. The bank statement from New York State Bank on that date showed a balance of $6,790.60. A comparison of the statement with the cash account revealed the following facts.
1. The statement included a debit memo of $47.00 for the printing of additional company checks.
2. Cash sales of $635.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $685.00. The bank credited Reber Company for the correct amount.
3. Outstanding checks at May 31 totaled $953.25. Deposits in transit were $2,802.15.
4. On May 18, the company issued check No. 1181 for $675 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $657.
5. A $3,386.00 note receivable was collected by the bank for Reber Company on May 31 plus $87.00 interest. The bank charged a collection fee of $27.00. 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 $1,186.00 that was incorrectly charged to Reber Company by the bank.
7. On May 31, the bank statement showed an NSF charge of $673.00 for a check issued by Sue Allison, a customer, to Reber Company on account.
Prepare the bank reconciliation at May 31, 2014. (Enter answers to 2 decimal places, e.g. 15.25. List items that increase cash balance first. Reconcile cash balance per bank first.)
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REBER COMPANY
Bank Reconciliation
May 31, 2014
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 Collection of note receivable Check printing charge Bank error—Stinercheckscheck Error in May 12 deposit Error in recording check No. 1181Cash balance per bank statement Deposit in transit Outstandingchecks Adjusted cash balance per bank
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$
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Less Add:
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Error in recording check No. 1181 Adjusted cash balance per bank Collection of note receivable Outstanding checks Check printing charge NSF check Error in May 12 deposit Cash balance per bank statement Deposit in transit Bank error—Stiner check
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$
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Error in recording check No. 1181 Outstanding checks Check printing charge Cash balance per bank statement Deposit in transit Collection of note receivable Adjusted cash balance per bank NSF check Bank error—Stiner check Error in May 12 deposit
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AddLess:
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Error in May 12 deposit Collection of note receivable Adjusted cash balance per bank Error in recording check No. 1181NSF check printing charge Outstanding checks Cash balance per bank statement Deposit in transit Bank error—Steiner check
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Adjusted cash balance per bank Cash balance per bank statement Error in recording check No. 1181Error in May 12 deposit in transit Bank error—Stinercheck Outstanding checks Check printing charge Collection of note receivables check
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$
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NSF check Bank error—Steinercheck Outstanding checks Error in recording check No. 1181Cash balance per books Check printing charge Error in May 12 deposit Adjusted cash balance per books Deposit in transit Collection of note receivable
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$
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Less Add:
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Collection of note receivablescheck Error in recording check No. 1181Adjusted cash balance per books Error in May 12 deposit Bank error—Stinercheck Cash balance per books Check printing charge Deposit in transit Outstanding checks
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Less Add:
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Outstanding checks Cash balance per books Adjusted cash balance per books Deposit in transit Check printing charge Bank error—Stiner check Collection of note receivable NSF check Error in recording check No. 1181 Error in May 12 deposit
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$
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Deposit in transit Outstanding checks Adjusted cash balance per books Collection of note receivable NSF check Bank error—Stiner check Cash balance per books Error in May 12 deposit Error in recording check No. 1181 Check printing charge
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NSF check Bank error—Stiner check Collection of note receivable Deposit in transit Error in May 12 deposit Outstanding checks Adjusted cash balance per books Error in recording check No. 1181 Check printing charge Cash balance per books
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Deposit in transit Error in recording check No. 1181 Check printing charge Collection of note receivable NSF check Bank error—Stiner check Error in May 12 deposit Outstanding checks Adjusted cash balance per books Cash balance per books
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Adjusted cash balance per booksCollection of note receivableCheck printing chargeCash balance per booksDeposit in transitNSF checkBank error—Stiner checkOutstanding checksError in May 12 depositError in recording check No. 1181
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$
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Prepare the necessary adjusting entries for Reber Company at May 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Enter answers to 2 decimal places, e.g. 15.25.)
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No.
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Account Titles and Explanation
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Debit
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Credit
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1.
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(To record note receivable.)
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2.
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(To record NSF check.)
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3.
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(To record error in deposit.)
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4.
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(To record error on check.)
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5.
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(To record check printing charge.)
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