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[The following information applies to the questions displayed below.] The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T-account for cash (summarized) are below. Martin Companys bank reconciliation at the end of April showed a cash balance of $21,900. No deposits were in transit at the end of April, but a deposit was in transit at the end of May.
BANK STATEMENT | ||||||
---|---|---|---|---|---|---|
Checks | Deposits | Other | Balance | |||
Balance, May 1 | $ 21,900 | |||||
May 2 | $ 9,000 | 30,900 | ||||
May 5 | #301 | $ 12,000 | 18,900 | |||
May 7 | #302 | 7,400 | 11,500 | |||
May 8 | 11,000 | 22,500 | ||||
May 14 | #303 | 570 | 21,930 | |||
May 17 | Interest earned | $ 190 | 22,120 | |||
May 22 | NSF check | 350 | 21,770 | |||
May 27 | #304 | 5,300 | 16,470 | |||
May 31 | Service charge | 95 | 16,375 | |||
Balance, May 31 | 16,375 |
Cash (A) | |||||
---|---|---|---|---|---|
Debit | Credit | ||||
May 1 | Balance | 21,900 | |||
May 1 | 9,000 | 12,000 | #301 | May 2 | |
May 7 | 11,000 | 7,400 | #302 | May 4 | |
May 29 | 7,400 | 570 | #303 | May 11 | |
5,300 | #304 | May 23 | |||
2,000 | #305 | May 29 | |||
May 31 | Balance | 22,030 |
Required:
- Prepare a bank reconciliation for May.
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