Timmins Grow-Fast spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company’s Cash account per its general ledger showed a balance of £6,738.90. The bank statement from Manchester Bank on that date showed the following balance.

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.
1. The statement included a debit memo of £40 for the printing of additional company checks.
2. Cash sales of £883.15 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for £933.15. The bank credited Timmins for the correct amount.
3. Outstanding checks at May 31 totaled £276.25, and deposits in transit were £1,880.15.
4. On May 18, the company issued check No. 1181 for £685 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins for £658.
5. £2,690 was collected by the bank for Timmins on May 31 through electronic funds transfer.
6. Included with the canceled checks was a check issued by Tomins to C. Pernod for £360 that was incorrectly charged to Timmins by the bank.
7. On May 31, the bank statement showed an NSF charge of £380 for a check issued by Sara Ballard, a customer, to Timmins on account.

Instructions
a. Prepare the bank reconciliation at May 31, 2020.
b. Prepare the necessary adjusting entries for Timmins at May 31, 2020.

Transcribed Image Text:

MANCHESTER BANK Daily Balance 5-31 6,968.00 Checks and Debits Deposits and Credits