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In: Finance

The following information was available for Wild Oat Company for the month ended May 31, 2020. (a) The book balance at May 31, 2020 was $6,890.22. (b) The bank balance at May 31, 2020 was $8,660.22.

The following information was available for Wild Oat Company for the month ended May 31, 2020.

(a) The book balance at May 31, 2020 was $6,890.22.

(b) The bank balance at May 31, 2020 was $8,660.22.

(c) Outstanding cheques amounted to $6,310.

(d) The may 31st cash receipts of $5,600 were deposited but have not yet appeared on the bank statement.

(e) A $50 debit memorandum for cheques printed by the bank was included with the cancelled cheques.

(f) A customer's note for $1,000 was collected by the bank. In addition interest on the note was $110.

Prepare a bank reconciliation for Wild Oat Company at May 31, 2020.

Solutions

Expert Solution

WILD OAT COMPANY
Bank Reconciliation
At May 31, 2020
Bank statement balance, May 31   8,660 Book balance, May 31   6,890
Add:     Add:    
Deposit in transit 5,600   Note collection 1,000  
      Interest earned 110  
    5,600     1,110
    $14,260     $8,000
Deduct:     Deduct:    
Outstanding cheques -6,310   Bank service charges -50  
    -6,310     -50
Adjusted bank balance   $7,950 Adjusted book balance   $7,950

Junaid answered 1 year ago
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