Slides 92-94 Illustration: Bank Reconciliation The Hawthorne Manufacturing Company maintains a general checking account at the First Pacific Bank. First Pacific provides a bank statement and cancelled checks once a month. The cutoff date is the last day of the month. The bank statement for the month of May is summarized as follows: Balance, May 1, 2016 Deposits Checks processed Service charges NSF checks Note payment collected by bank (includes $120 interest) Balance, May 31, 2016 $32, 120 82,140 (78,433) ( 80) (2, 187) 1, 120 $34,680 The company's general ledger cash account has a balance of $35,276 at the end of May. A review of the company records and the bank statement reveals the following: 1. 2. 3. 4. Cash receipts not yet deposited totaled $2,965. A deposit of $1 ,020 was made on May 31 that was not credited to the company's account until June. All checks written in April have been processed by the bank. Checks written in May that had not been processed by the bank total $5,536. A check written for $1 , 790 was incorrectly recorded by the company as a $790 disbursement. The check was for payment to a supplier of raw materials.