The following data were accumulated for use in reconciling the bank account of Zeks Co. for May 2016:

1.	Cash balance according to the companys records at May 31, 2016, $22,110.
2.	Cash balance according to the bank statement at May 31, 2016, $29,650.
3.	Checks outstanding, $13,875.
4.	Deposit in transit, not recorded by bank, $6,770.
5.	A check for $50 in payment of an account was erroneously recorded in the check register as $500.
6.	Bank debit memo for service charges, $15.

A.

Prepare a bank reconciliation, using the format shown in

Exhibit 13

. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word Deduct: or Add: will automatically appear if it is required.

B.

If the balance sheet were prepared for Zeks Co. on May 31, 2016, what amount should be reported for cash?

C.

Must a bank reconciliation always balance (reconcile)?

Amount Descriptions

Adjusted balance

Bank service charge

Bank error in charging check as $50 instead of $500

Bank error in charging check as $500 instead of $50

Deposit in transit, not recorded by bank

Error in recording check as $50 instead of $500

Error in recording check as $500 instead of $50

Outstanding checks

A. Prepare a bank reconciliation, using the format shown in

Exhibit 13

. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word Deduct: or Add: will automatically appear if it is required.

ZEKS CO.

Bank Reconciliation

May 31, 2016

1	Cash balance according to bank statement
2
3
4
5
6
7	Cash balance according to companys records
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9
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11