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You are given the following information for River Adventures Company:
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RIVER ADVENTURES COMPANY Bank Reconciliation April 30, 2008
Cash balance per bank $9,009 Add |
Deposits |
The adjusted cash balance per bank agreed with the cash balance per books at April 30, 2008. The May bank statement showed the following:
| RIVER ADVENTURES COMPANY
Bank Statement May 31, 2008 |
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Date |
Cheques and Other Debits |
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|
Number |
Amount |
Balance |
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Apr. 30 May 3 4 6 6 10 10 13 13 14
18 18 19 21
25 26 28 31 |
526541
556 557
559
561 562
563 564 565
NSF SC |
$1,358
363 223 1,800
1,650
799 2,045
2,487 603 1,033
440 25 |
$ 846
1,250
980
426 1,650 222 980 1,771
|
$9,009
8,497 8,134 7,911 7,361 8,341 6,691 7,117 8,767 7,968 5,923 6,145 3,658 3,055 2,022 3,002 4,333 4,308 |
Additional information from the bank statement:
- The deposit of $1,650 on May 13 is an electronic transfer from a customer in payment of its account. The amount includes $35 of interest, which River Adventures Company had not previously accrued.
- The NSF for $440 is for a $425 cheque from a customer, Ralph King, in payment of his account, plus a $15 processing fee.
- SC represents bank service charges for the month.
- The bank made an error when processing cheque #564. The company also made two errors in the month. All cheques were written to pay accounts payable, all cash receipts were collections of accounts receivable.
Instructions
(a) Calculate the unadjusted cash balance in River Adventures’ general ledger at May 31.
(b) Prepare bank reconciliation and the necessary adjusting journal entries at May 31.
