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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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