Ling Corp deposits all receipts intact and makes all payments
Ling Corp. deposits all receipts intact and makes all payments by cheque. The following information is available from the cash records:
Instructions
(a) Keeping in mind the time lag between deposits and cheques being recorded in the books and when they are recorded by the bank, determine the amount of outstanding deposits and outstanding cheques at May 31.
(b) Prepare a May 31 bank reconciliation showing balance per bank statement and balance per books and correct cash balance.
(c) Prepare the journal entry or entries to correct the Cash account at May 31.
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