Question

Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company’s Cash account per its general ledger showed a balance of $6,100.50.
The bank statement from Emporia State Bank on that date showed the following balance.

Emporia State Bank
Checks and Debits		Deposits and Credits		Daily Balance
XXX		XXX		5-31		7,209.60

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

1.		The statement included a debit memo of $50 for the printing of additional company checks.
2.		Cash sales of $983.36 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $1,043.36. The bank credited Timmins Company for the correct amount.
3.		Outstanding checks at May 31 totaled $53.55, and deposits in transit were $1,830.45.
4.		On May 18, the company issued check No. 1181 for $671 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $617.
5.		$3,900 was collected by the bank for Timmins Company on May 31 through electronic funds transfer.
6.		Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $480 that was incorrectly charged to Timmins Company by the bank.
7.		On May 31, the bank statement showed an NSF charge of $370 for a check issued by Sara Ballard, a customer, to Timmins Company on account. Prepare the bank reconciliation at May 31, 2020. (List items that increase cash balance first.)

Answer 1

Timmins Company of Emporia, Kansas
Bank Reconciliation
May 31, 2020
Company's Book			Bank Statement
Balance per books		$ 6,100.50	Balance per bank		$ 7,209.60
Add: Electronic fund transfer		$ 3,900.00	Add:
			Deposit in transit	$ 1,830.45
Deduct:			Bank error in recording of check	$     480.00
Check printing charges	$    50.00				$ 2,310.45
NSF Check	$ 370.00
Error in recording of cash deposit ($1043.36-$983.36)	$    60.00		Deduct: Outstanding check		$        53.55
Error in recording of check #1181 ($671-$617)	$    54.00
		$     534.00
Adjusted book balance		$ 9,466.50	Adjusted bank balance		$ 9,466.50

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