On May 31, 202X the Cash account of Perkins Supply Company had a balance of $43,820. On
Question:
On May 31, 202X the Cash account of Perkins Supply Company had a balance of $43,820. On that date, the bank statement indicated a balance of $54,600.
The bank reported the collection of a note receivable for Perkins of $6,300 plus $300 of interest. The $1,700 cheque of a customer, Raymond Frank, was returned by the bank because of insufficient funds. The bank charged Perkins $60 for services. The bank erroneously failed to credit a $4,200 deposit to Perkins' account.
It was observed that the bank statement did not include a deposit of $4,700 made by Perkins on May 31 and that cheques totaling $13,400 issued by Perkins had not cleared the bank. Perkins recorded an insurance expense payment of $160 as $1,600.
(a) Prepare a bank reconciliation (in good form) as of May 31.
(b) Prepare, in general journal form, the entry (entries) necessary to adjust Perkins' records based on the bank reconciliation.
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,