Which cleared the bank in may, was incorrectly journalized

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Reference no: EM133346909

Question: O'Hearn Limited had a cash balance per books of $13,400. The bank statement from Community Bank on that date showed a balance of $15,230. A comparison of the bank statement with the company's Cash account revealed the following:

The bank statement included a bank service charge of $80.
The bank statement included two electronic collections from customers on account: $4,110 received from C. Campbell and $78 received from R. Pokoj. These were not previously recorded.
Cash sales of $1,672 on May 12 were deposited in the bank. The journal entry and the deposit slip were incorrectly made out and recorded by O'Hearn for $1,712. The bank detected the error and credited O'Hearn for the correct amount.
Outstanding cheques at April 30 totalled $2,900. Of these, $2,240 worth cleared the bank in May. There were $1,892 of cheques written in May that were still outstanding on May 31.
On May 18, the company issued cheque # 1181 for $1,370 to a creditor in payment of its account. The cheque, which cleared the bank in May, was incorrectly journalized and posted by O'Hearn as being for $1,136.
Included with the cancelled cheques was a cheque issued by O'Bearne Inc. for $1,200 that was incorrectly charged to O'Hearne by the bank.
On May 31, the bank statement showed a returned (NSF) cheque for $1,350 issued by a customer in payment of its account. In addition, the bank charged an $80 processing fee for this transaction.
The May 31 deposit of $1,926 was not included in the deposits on the May bank statement. The deposit had been placed in the bank's night deposit vault on May 31.

Reference no: EM133346909

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