Shamara Systems most recently reconciled its bank balance on April

Shamara Systems most recently reconciled its bank balance on April 30 and reported two checks outstanding at that time, No. 1771 for $781 and No. 1780 for $1,425.90. The following information is available for its May 31, 2017, reconciliation.

From the May 31 Bank Statement

Shamara Systems most recently reconciled its bank balance on April

From Shamara Systems's Accounting Records

Shamara Systems most recently reconciled its bank balance on April

Additional Information
Check No. 1788 is correctly drawn for $654 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 $644. 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 (CM) is from a $7,400 note that the bank collected for the company. The bank deducted a $50 collection expense and deposited the remainder in the company's account. The collection and expense have not yet been recorded.
Required
1. Prepare the May 31, 2017, bank reconciliation for Shamara Systems.
2. Prepare the journal entries (in dollars and cents) to adjust the book balance of cash to the reconciled balance.
3. The bank statement reveals that some of the prenumbered checks in the sequence are missing. Describe three possible situations to explain this.

Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Cost Accounting Tutors
Ask questions directly from Qualified Online Cost Accounting Tutors .
Best for online homework assistance.