P 8-12

Solution

Magnificent Compan
Bank Reconciliation
May 31, 2015
Cash balance per accounting record
Add:
Notes collected by bank
Proceeds of bank loan on May 30
Total
Less:
NSF Check
Cost of printed checks
Bank service charge
Adjusted cash balance

810,000
570,000
77,000
12,000
10,000

Cash balance per bank statement

Add:
Deposit in transit
Erroneous bank debit
Total
Less:
Outstanding checks
Understatement of Check No. 1086
Adjusted cash balance

(b)

Cash in bank
Interest expense
Notes receivable
Interest revenue
Loan payable

Accounts Receivable
Miscellaneous expense

500,000
80,000
685,000
90,000

1,350,000
30,000

77,000
12,000

Service charge
Cash in bank

10,000

agnificent Company
Bank Reconciliation
May 31, 2015
1,719,000
1,380,000
3,099,000

(99,000)
3,000,000

3,195,000
580,000
3,775,000
(775,000)
3,000,000

800,000
10,000
570,000

99,000