The May 31, 2013, Balance Per Bank Statement Was $6,200

The May 31, 2013, balance per bank statement was $6,200. The cash balance per books was $8,500. Outstanding checks amounted to $850, and deposits in transit were $2,400. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175.
Required:
a) Prepare a bank reconciliation to determine the true cash balance at May 31, 2013.
b) Prepare any necessary journal entries.

Correct Answer:

Verified

a) b)
Explanation:...

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