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Question 1
The following is a bank reconciliation for Usman company as of May 31.

DescriptionAmountTotal
Balance per bank statement, May 318,072
Add: Deposit in transit5,686Single line
Single line13,758
Less: Outstanding checks6,157Single line
Adjusted balance, May 31Single line7,601Double line
Balance per ledger, May 317,850
Add: Error correction*64Single line
Single line7,914
Less: NSF check282313Single line
Service and collection charges31Single lineSingle line
Adjusted balance, May 31Single line7,601Double line

 

* misrecorded payment on account

Prepare the journal entry or entries needed to adjust or correct the Cash account.

Journal
DateDescriptionDebitCredit
May 31
May 31
May 31
May 31
May 31



Question 2

Review the results from preparing Let's Be Safe Security Systems bank reconciliation.

Bank
DescriptionAmount
Balance (ending)6,075
Subcategory,ADD:
Deposits in transit318Single line
Single line6,393
Subcategory,SUBTRACT:
Outstanding checks1,711Single line
Adjusted BalanceSingle line4,682Double line

 

CHECKBOOK (COMPANY)
DescriptionAmount
Balance (ending)4,065
Subcategory,ADD:
Bank Collections629
Interest Revenue19
Subcategory,SUBTRACT:
Service Charge31Single line
Adjusted BalanceSingle line4,682Double line

 

Journalize the company’s transactions that arise from the bank reconciliation.

Journal
DateDescriptionDebitCredit
December 31
December 31
December 31
December 31
December 31


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