Question

Oriole Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company’s Cash account per its general ledger showed a balance of $6,808.90.

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 7,038.00

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 $54.00 for the printing of additional company checks.
2.		Cash sales of $897.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $947.15. The bank credited Oriole Company for the correct amount.
3.		Outstanding checks at May 31 totaled $294.25, and deposits in transit were $1,894.15.
4.		On May 18, the company issued check No. 1181 for $683.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Oriole Company for $638.00.
5.		A $2,774.00 note receivable was collected by the bank for Oriole 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 $346.00 that was incorrectly charged to Oriole Company by the bank.
7.		On May 31, the bank statement showed an NSF charge of $450.00 for a check issued by Sara Ballard, a customer, to Oriole Company on account.

Prepare the bank reconciliation at May 31, 2017. (List items that increase balance as per bank & books first.)

ORIOLE COMPANY Bank Reconciliation choose the accounting period                                                                      For the Year Ended May 31, 2017For the Month Ended May 31, 2017May 31, 2017
select an opening name for section one                                                                      Error in depositDeposits in transitElectronic funds transfer receivedOutstanding checksCash balance per bank statementAdjusted cash balance per bankNSF checkCheck printing chargeError in recording checkBank error					$enter a dollar amount
select between addition and deduction                                                                      AddLess:
	select a reconciling item                                                                      Bank errorDeposits in transitOutstanding checksError in depositCash balance per bank statementCheck printing chargeAdjusted cash balance per bankNSF checkError in recording checkElectronic funds transfer received		$enter a dollar amount
	select a reconciling item                                                                      NSF checkAdjusted cash balance per bankElectronic funds transfer receivedCash balance per bank statementError in depositCheck printing chargeError in recording checkBank errorOutstanding checksDeposits in transit		enter a dollar amount
					enter a subtotal of the two previous amounts
					enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      NSF checkCash balance per bank statementAdjusted cash balance per bankDeposits in transitError in depositBank errorCheck printing chargeOutstanding checksElectronic funds transfer receivedError in recording check				enter a dollar amount
select a closing name for section one                                                                      Bank errorCheck printing chargeNSF checkAdjusted cash balance per bankCash balance per bank statementDeposits in transitElectronic funds transfer receivedError in depositError in recording checkOutstanding checks					$enter a total amount for the first section
select an opening name for section two                                                                      Cash balance per booksBank errorNSF checkOutstanding checksAdjusted cash balance per booksDeposits in transitError in depositElectronic funds transfer receivedError in recording checkCheck printing charge					$enter a dollar amount
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Error in recording checkBank errorCheck printing chargeElectronic funds transfer receivedAdjusted cash balance per booksNSF checkOutstanding checksError in depositCash balance per booksDeposits in transit				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess:
	select a reconciling item                                                                      Cash balance per booksError in depositElectronic funds transfer receivedDeposits in transitBank errorNSF checkOutstanding checksError in recording checkAdjusted cash balance per booksCheck printing charge		$enter a dollar amount
	select a reconciling item                                                                      Error in recording checkCheck printing chargeError in depositOutstanding checksNSF checkAdjusted cash balance per booksBank errorCash balance per booksElectronic funds transfer receivedDeposits in transit		enter a dollar amount
	select a reconciling item                                                                      Outstanding checksNSF checkCash balance per booksBank errorCheck printing chargeElectronic funds transfer receivedError in depositDeposits in transitAdjusted cash balance per booksError in recording check		enter a dollar amount
	select a reconciling item                                                                      Error in depositNSF checkDeposits in transitBank errorCash balance per booksCheck printing chargeOutstanding checksError in recording checkAdjusted cash balance per booksElectronic funds transfer received		enter a dollar amount
					enter a subtotal of the four previous amounts
select a closing name for section two                                                                      Deposits in transitError in depositBank errorAdjusted cash balance per booksCheck printing chargeOutstanding checksError in recording checkCash balance per booksNSF checkElectronic funds transfer received					$enter a total amount for the second section

   

Prepare the necessary adjusting entries for Oriole Company at May 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Bank reconciliation
May 31, 2017
Cash balance per Bank statement		7,038.00
Add:
Deposits in transit	1,894.15
Bank error-Tomins	346.00
		2,240.15
		9,278.15
Less: Outstanding checks		294.25
Adjusted cash balance per bank		8,983.90
Cash balance per books		6,808.90
Add: Electronic funds transfer received		2,774.00
		9,582.90
Less:
Check printing charge	54.00
Error in recording check	45.00
Error in deposit	50.00
NSF check	450.00
		599.00
Adjusted Cash balance per books		8,983.90
2
	Debit	Credit
Cash	2,774.00
Accounts Receivable/Notes Receivable		2,774.00
Accounts Receivable	450.00
Cash		450.00
Sales revenue	50.00
Cash		50.00
Accounts Payable	45.00
Cash		45.00
Bank charges expense/Miscellaneous expense	54.00
Cash		54.00