The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T- account for cash (summarized) are on the next page. Martin Company€™s bank reconciliation at the end of April showed a cash balance of $ 18,800. No deposits were in transit at the end of

The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T- account for cash (summarized) are on the next page. Martin Company€™s bank reconciliation at the end of April showed a cash balance of $ 18,800. No deposits were in transit at the end of April, but a deposit was in transit at the end of May.
The bookkeeper at Martin Company has asked you to prepare
The bookkeeper at Martin Company has asked you to prepare

Required:
1. Prepare a bank reconciliation for May.
2. Prepare any journal entries Required. as a result of the bank reconciliation. Why are they necessary?
3. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger?
4. If the company also has $ 50 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the balance sheet at the end of May?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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Related Book For answer-question

Fundamentals of Financial Accounting

5th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

ISBN: 978-0078025914