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Binford Company Bank Reconciliation

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Bank reconciliation is the process of systematically comparing the cash balance as reported by the bank with the cash balance on the company's books explaining any differences.

FORMAT:
Balance per bank Balance per book
Additions Additions

Deductions Deductions

Adjusted bank balance Adjusted book balance

The following information is available for Binford Company:
1. The May 2009 Bank statement showed the following:
a. Balance, May 1 $21,000.00
b. Cancelled Checks $13,904.20
c. Deposits $16,471.65
d. Interest earned by Binford $ 28.75
e. Balance, May 31
2. Binford Company's cash accounts showed the following for May:
a. Balance, May 1 $20,971.25
b. Debits $22,700.40
c. Credits $22,886.34
d. Balance, May 31 $20,785.31
3. The bank service charge for May was $18.
4. Outstanding checks totaled $9,100.14.
5. Deposits in transit totaled $8,000.00
6. The bank statement reveals that Binford Company's account has been reduced by $100. The company had deposited a $100 check from one of its customers, which was subsequently returned to Binford's bank and marked NSF.
7. The bank collected an $1,800 note for Bindford Company. The company was not aware of the collection until receiving the bank statement.

Prepare a bank reconciliation for May 31, 2009.

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