McDowells Company received their monthly bank statement for May 2016. An analysis of the bank...
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Accounting
McDowells Company received their monthly bank statement for May 2016. An analysis of the bank statement and their cash account revealed the following facts. Prepare the bank reconciliation for McDowells Company for May:
1. The bank statement has a balance of $6,925.
2. The cash account has a balance of $4,622.
3. A deposit in transit made on April 30th was $4,200.
4. Outstanding checks totaled $5,800.
5. The bank collected a note of $1,200, plus interest of $70 less a service charge of $10.
6. The bank statement showed a monthly bank service charge of $40.
7. The bank statement included a check for $550 written to Delta from a customer that was returned for insufficient funds.
8. Check No. 730 was written and cleared the bank for $429. McDowells recorded the check in their records for $492.
9. The bank statement showed that $45 was added to the checking account on during May for interest earned by the company.
10. Check printing fee of $75 was incorrectly charge to McDowells by the bank.
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