5-1A (Stolen version redo it)

5-1A (Stolen version redo it) - 54.60 519.60 Deduct: Bank...

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LO 2 PROBLEM 5-1 BANK RECONCILIATION 1. CALICO CORNERS BANK RECONCILIATION MAY 31, 2004 Balance per bank statement, May 31 $ 8,432.11 Add:Deposit-in-transit $ 1,250.00 Bank error: deposit credited to wrong account 123.45 1,373.45 Deduct: Outstanding checks: #123 $ 23.40 #127 145.00 #128 210.80 #130 67.32 (446.52 ) Adjusted balance, May 31 $ 9,359.04 Balance per books, May 31 $ 9,965.34 Add:Interest earned on bonds $ 465.00 Interest earned on account
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Unformatted text preview: 54.60 519.60 Deduct: Bank service charges $ 50.00 NSF check 166.00 Book error: Deposit of $101.10 recorded as $1,011.00 909.90 (1,125.90 ) Adjusted balance, May 31 $ 9,359.04 2. The fallacy in the friend's reasoning is that only the company, not the bank, can make errors. A bank reconciliation is needed to detect errors and omissions on both the books and the banks records....
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