Reference no: EM132525358
Question -
The Global Action Company's Cash account in its general ledger reported a balance of $9,242 on May 31, 2014. The company's bank statement from Western Bank reported a balance of $11,890 on the same date.
A comparison of the details in the bank statement with the details in the Cash account revealed the following facts:
1. The bank statement included a debit memo of $50 for bank service charges.
2. Cash sales of $1,386 on May 30 were deposited in the bank. The journal entry to record the cash sales and the deposit slip to deposit the cash were correctly made out for $1,386. The bank credited Global Action Company for $1,638. The bank found the error and corrected it on June 1.
3. The April 30 deposit of $2,190 was included on the May bank statement. The deposit had been placed in the bank's night deposit vault on April 30.
4. The May 31 deposit of $1,794 was not included on the May bank statement. The deposit had been placed in the bank's night deposit vault on May 31.
5. Cheques #928 for $180 and #1014 for $636 were outstanding on April 30. Of these, #928 cleared the bank in May. All of the cheques written in May except for #1127 for $276, #1195 for $760, and #1196 for $348 had cleared the bank by May 31.
6. On May 18, the company issued cheque #1151 for $495 to L. Kingston, on account. The cheque, which cleared the bank in May, was incorrectly journalized and posted by Global Action Company for $945.
7. On May 28, the company issued cheque #1192 for $765 to Bow Graphics for equipment. The cheque was incorrectly recorded by Global Action as $675. The cheque cleared the bank on May 30.
8. A review of the bank statement revealed that Global Action Company received $2,511 of electronic payments from customers on account in May. The bank had also credited the company's account with $24 of interest revenue on May 31. Global Action Company had no previous notice of these amounts.
9. On May 31, the bank statement showed an NSF charge of $660 for a cheque issued by Pete Dell, a customer, to Global Action Company on account. On the same day, the bank also charged the company a $15 service charge for the returned cheque.
Required - Prepare the bank reconciliation for the company.