On May 31 2010 Sharp Company had a cash balance
On May 31, 2010, Sharp Company had a cash balance in its general ledger of $6,675. The company’s bank statement from National Bank showed a May 31 balance of $8,240. The following facts have come to your attention:
a. Sharp’s May 31 deposit of $1,000 was not included on the bank statement because it was dropped in the night depository after bank hours on May 31.
b. The bank’s general service charge for the month was $100.
c. The bank collected a note receivable of $1,500 for Sharp Company along with an additional $58 for interest. The bank deducted a $30 fee for this service. Sharp Company had not accrued any interest on the note.
d. Sharp’s bookkeeper erroneously recorded a payment to Williams Company for $192 as $129. The check cleared the bank for the correct amount of $192.
e. Sharp’s outstanding checks at May 31 totaled $1,200.

1. Prepare a bank reconciliation as of May 31.
2. Prepare the necessary adjustments to the accounting equation to update the records of Sharp Company.

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