Question

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 $52.00 for the printing of additional company checks.
2.		Cash sales of $895.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $945.15. The bank credited Sunland Company for the correct amount.
3.		Outstanding checks at May 31 totaled $297.25, and deposits in transit were $1,892.15.
4.		On May 18, the company issued check No. 1181 for $686.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sunland Company for $638.00.
5.		$2,842.00 was collected from a customer note receivable by the bank for Sunland 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 $348.00 that was incorrectly charged to Sunland Company by the bank.
7.		On May 31, the bank statement showed an NSF charge of $520.00 for a check issued by Sara Ballard, a customer, to Sunland Company on account. Prepare the bank reconciliation at May 31, 2022 ALSO; Journalize the adjusting entries at July 31 on the books of the company

Answer 1

##Kindly provide the unadjusted balance as per bank and books to complete reconciliation.

BANK RECONCILIATION AT MAY 31 2022
Balance as per Bank		Balance as per Books
Add:Deposit in transit	1892.15	Add:collection of note	2842
Error made by bank in debiting check	348
Deducted		Deducted
Outstanding checks	(297.25)	Bank charges	(52)
		Error in recording cash sales (945.15-895.15)	(50)
		Error in recording check no.1181 (686-638)	(48)
		NSF returned	(520)

b)

Date	Account title	Debit	credit
May 31 2022	cash	2842
	Note receivable		2842
May 31 2022	Bank service charge	52
	cash		52
May 31 2022	Sales revenue	50
	cash		50
May 31 2022	Accounts payable	48
	cash		48
	[Error in recording check no .1181]
May 31 2022	Accounts receivable	520
	cash		520
	[NSF returned]