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A company's bank statement on May 31 and ledger accounts for May are summarized below.
BANK STATEMENT
Checks
Deposits
Balance
Balance, May 1
$8,100
Depots during May
$17,000
25,100
Checks cleared during May
$19,200
5,900
Bank service charges
30
5,870
Balance, May 31
Cash (A)
May 1 Balance
May Checks written
$23,150
May Deposits
$19,760
Ending Cash Balance
$4,710
A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $3,950. A deposit of $2,760 is in transit at the end of May.
Reconcile the bank account. Give the journal entries that should be made as a result of the bank reconciliation. Compute the balance in the Cash account after the reconciliation entries.
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