On May 31, 2020, Cullen Company had a cash balance per books of $14,000. The bank statement
Question:
On May 31, 2020, Cullen Company had a cash balance per books of $14,000. The bank statement showed a balance of $42,500 on that day. A comparison of the statement with the Cash account revealed the following facts. 01. A $ 14,500 cheque which was deposited on 30/05/2020 was not recorded in the bank statement. 02. A $50,000 note receivable was collected by the bank. 03. Two cheques for $15,000 and $20,000 which were issued for suppliers were not presented to the bank yet. 04. A $32,000 cheques which was received by a customer was deposited in the bank on 26/05/2020 has been bounced. 05. The statement included a Debit memo $500 and a standing order payment $9,500 for a life Insurance.
(a) Show the adjusted bank balance as per books as at 31/05/2020.
(b) Prepare the bank reconciliation for the month of May.
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso