On May 31, 2010, Sharp Company had a cash balance in its general ledger of $6,675. The company’s bank statement from National Bank showed a May 31 balance of $8,240. The following facts have come to your attention
a:Sharp’s May 31 deposit of $1,000 was not included on the bank statement because it was dropped in the night depository after bank hours on May 31
b The banks general service charge for the month was $100
c the bank collected a note receivable of $1,500 for Sharp Company along with an additional $58 for interest. The bank deducted a $30 fee for this service. Sharp Company had not accured any interest on the note.
d. Sharp’s bookkeeper erroneously recoreded a payment to Williams Company for $192 as $129. The check cleared the bank for the correct amount of 192
e. Sharp’s outstanding checks at May 31 totaled $1,200
Requirements
1. Prepare a bank reconciliation as of May 31
2. Prepare the necessary adjustments to the accounting equation to update the records of sharp company
Sheet3 Sheet2 Sheet1 A B C D E G H Name Section F End of Problem Bank Reconciliation Bank: Add: Less: Total outstanding checks Books: Deduct: Add: Assets = Shareholders’ Equity Contributed capital + Retained earnings cash Liabilities + bank fees Problem 4-47A Sharp Company Balance, May 31 Correct (adjusted) book balance, May 31 Correct (adjusted) bank balance, May 31 May 31 Deposit in transit Amount Title Reimers, Financial Accounting 3e 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 $0.00 13.00 14.00 15.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 ($100.00) ($100.00) 32.00 33.00 34.00 35.00 36.00 37.00 38.00 39.00 40.00 CyberCoach: This amount must equal the Adjusted book balance in cell H27. Otherwise, you have not reconciled. CyberCoach: This amount must equal the Adjusted bank balance in cell H16. Otherwise, you have not reconciled. CyberCoach: Enter amounts as a positive number in cells H24, H25, and H26 . Sheet3 Sheet2 Sheet1 A B C D E G H Name Section F End of Problem Bank Reconciliation Bank: Add: Less: Total outstanding checks Books: Deduct: Add: Assets = Shareholders’ Equity Contributed capital + Retained earnings cash Liabilities + bank fees Problem 4-47A Sharp Company Balance, May 31 Correct (adjusted) book balance, May 31 Correct (adjusted) bank balance, May 31 May 31 Deposit in transit Amount Title Reimers, Financial Accounting 3e 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 $0.00 13.00 14.00 15.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 ($100.00) ($100.00) 32.00 33.00 34.00 35.00 36.00 37.00 38.00 39.00 40.00 CyberCoach: This amount must equal the Adjusted book balance in cell H27. Otherwise, you have not reconciled. CyberCoach: This amount must equal the Adjusted bank…
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