Tamzen Systems most recently reconciled its bank balance on April 30 and reported two checks outstanding at that time, No. 1771 for $1,037 and No. 1780 for $516. The following information is available for its May 31, 2011, reconciliation.
From the May 31 Bank Statement
Additional Information
Check No. 1788 is correctly drawn for $238 to pay for May utilities; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Utilities Expense and a credit to Cash for $228. The bank paid and deducted the correct amount. The NSF check shown in the statement was originally received from a customer, W. Sox, in payment of her account. The company has not yet recorded its return. The credit memorandum is from a $1,540 note that the bank collected for the company. The bank deducted a $20 collection fee and deposited the remainder in the company’s account. The collection and fee have not yet been recorded.
1. Prepare the May 31, 2011, bank reconciliation for Tamzen Systems.
2. Prepare the journal entries to adjust the book balance of cash to the reconciled balance.
Analysis Component
3. The bank statement reveals that some of the prenumbered checks in the sequence are missing. Describe three possible situations to explain this.

  • CreatedMarch 18, 2015
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