On May 31, 2010, James Logan Company had a cash balance per books of $6,781.50. The bank statement from Farmers State Bank on that date showed a balance of $6,404.60. A comparison of the statement with the cash account revealed the following facts.
The statement included a debit memo of $40 for the printing of additional company checks.
Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Logan Company for the correct amount.
Outstanding checks at May 31 totaled $576.25. Deposits in transit were $1,916.15.
On May 18, the company issued check No. 1181 for $685 to Barry Trest, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Logan Company for $658.
A $2,500 note receivable was collected by the bank for Logan Company on May 31 plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note.
Included with the cancelled checks was a check issued by Bridgetown Company to Tom Lujak for $800 that was incorrectly charged to Logan Company by the bank.
On May 31, the bank statement showed an NSF charge of $680 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 eg 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)
JAMES LOGAN COMPANY
Bank Reconciliation
May 31, 2010 $
Add: $
$ $
Less: $
$
Adjusted cash balance per bank $
$
Add: $
Less: $
$
$
$ $
Adjusted cash balance per books $
Prepare the necessary adjusting entries for Logan Company at May 31, 2010. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)
Date Description/Account Debit Credit
May 31 $
$
$
$
(To record collection of note receivable by bank.)
May 31 $
$
(To record NSF check.)
May 31 $
$
(To record error in May 12 deposit.)
May 31 $
$
(To record error on check no.1181.)
May 31 $
$
(To record check printing charge.)