Comprehensive bank reconciliation with journal entries

Reference no: EM1355945

On May 31, 2010, James Logan Company had a cash balance per books of $8,205.62. The bank statement from Farmers State Bank on that date showed a balance of $7,749.57. A comparison of the statement with the cash account revealed the following facts.

1. The statement included a debit memo of $48.40 for the printing of additional company checks.

2. Cash sales of $1,011.74 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $1,072.24. The bank credited Logan Company for the correct amount.

3. Outstanding checks at May 31 totaled $697.26. Deposits in transit were $2,318.54.

4. On May 18, the company issued check No. 1181 for $828.85 to Barry Trest, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Logan Company for $796.18.

5. A $3,025.00 note receivable was collected by the bank for Logan Company on May 31 plus $96.80 interest. The bank charged a collection fee of $24.20. No interest has been accrued on the note.

6. Included with the cancelled checks was a check issued by Bridgetown Company to Tom Lujak for $968.00 that was incorrectly charged to Logan Company by the bank.

7. On May 31, the bank statement showed an NSF charge of $822.80 for a check issued by Sandy Grifton, a customer, to Logan Company on account.

Prepare the bank reconciliation at May 31, 2010. (List amounts from largest to smallest e.g., 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)

Prepare the necessary adjusting entries for Logan Company at May 31, 2010. (For multiple debit/credit entries, list amounts from largest to smallest e.g., 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)

Reference no: EM1355945

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