Reference no: EM132520105

Question - Sultan Grocery developed the following information in recording its bank statement for the month of May. Balance per books May 31 $ 3,664 Balance per bank statement March 31 $10,900. The following information also available:

(1) Checks written in May but still outstanding $7,000.

(2) Checks written in April but still outstanding $2,100.

(3) Deposits of May 30 and 31 not yet recorded by bank $5,200.

(4) NSF check of customer returned by bank $1,200.

(5) Check No. 210 for $593 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $539.

(6) Bank service charge for May was $50.

(7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in May.

(8) The bank collected a note receivable for the company for $4,000 plus $100 interest revenue.

Instructions - Make bank reconciliation at May 31 and provide necessary journal entries.