The May 31,2016,balance Per Bank Statement Was $12,400

question 3

Essay

The May 31,2016,balance per bank statement was $12,400.The cash balance per books was $17,000.Outstanding checks amounted to $1,700,and deposits in transit were $4,800.The bank statement contained an NSF check for $1,100,a service charge for $50,and a debit memo for direct payment of the telephone bill of $350.
Required: a)Prepare a bank reconciliation to determine the true cash balance at May 31,2016.
b)Prepare any necessary journal entries.

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Definitions:

Capital Stock

Refers to the total amount of physical goods and financial assets owned by a company that are used in producing goods or services.

Capital Production

The process of creating goods and services through the combination of labor, land, and capital.

Rich and Poor Countries

The classification of countries based on their economic status, with rich countries having high levels of income and wealth and poor countries having significantly lower levels.

Consumer Preferences

The particular goods and services that consumers demand, reflecting their tastes, desires, and needs.