Problem 7-8A (Part Level Submission)

On May 31, 2017, Crane Theatres cash account per its general ledger showed the following balance:

CASH					No. 101
Date	Explanation	Ref	Debit	Credit	Balance
May 31	Balance				6,704

The bank statement from Canada Bank on that date showed the following balance:

CANADA BANK
Checks and Debits		Deposits and Credits		Daily Balance
XXX		XXX		5/31 6,668

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 $45 for the monthly bank service charges.
2.		Cash sales of $819 on May 12 were deposited in the bank. The bookkeeper recorded the deposit in the cash journal as $829.
3.		Outstanding cheques on May 31 totalled $505 and deposits in transit were $1,407.
4.		On May 18, the company issued cheque #1581 for $684 to M. Datz on account. The cheque, which cleared the bank in May, was incorrectly journalized and posted by Crane Theatre for $648.
5.		A $2,450 note receivable was wired to the bank account of Crane Theatre on May 31. Interest was not collected for the note.
6.		Included with the cancelled cheques was a cheque issued by Bohr Theatre for $590 that was incorrectly charged to Crane Theatre by the bank.
7.		On May 31, the bank statement showed an NSF charge of $903 for a cheque issued by Tyler Bickell, a customer, to Crane Theatre on account.

Prepare the bank reconciliation at May 31. (List items that increase balance as per bank & books first.)