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Question - Wright Company's cash account shows a $29,300 debit balance and its bank statement shows $27,600 on deposit at the close of business on May 31.
1. The May 31 bank statement lists $190 in bank service charges; the company has not yet recorded the cost of these services.
2. Outstanding checks as of May 31 total $6,500.
3. May 31 cash receipts of $7,100 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement.
4. In reviewing the bank statement, a $490 check written by Smith Company was mistakenly drawn against Wright's account.
5. The bank statement shows a $420 NSF check from a customer; the company has not yet recorded this NSF check.
Required - Prepare its bank reconciliation using the above information.
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