Compute the balance in the cash account

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Reference no: EM13492277

A company's bank statement on May 31 and ledger accounts for May are summarized below.

BANK STATEMENT

 

Checks

Deposits

Balance

Balance,  May 1

 

 

$8,100

Depots during May

 

$17,000

25,100

Checks cleared during May

$19,200

 

5,900

Bank service charges

30

 

5,870

Balance, May 31

 

 

5,870

 

Cash (A)

May 1 Balance

$8,100

May Checks written

$23,150

May Deposits

$19,760



Ending Cash Balance

$4,710

 

 

 

A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $3,950. A deposit of $2,760 is in transit at the end of May.

Reconcile the bank account. Give the journal entries that should be made as a result of the bank reconciliation. Compute the balance in the Cash account after the reconciliation entries.

 

Reference no: EM13492277

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