Explore BrainMass

Dogg Co bank reconciliation for May 2004

2. In preparing its May 31, 2004 bank reconciliation, Dogg Co. has the
following information available:

Balance per bank statement, 5/31/04 $27,000
Deposit in transit, 5/31/04 5,400
Outstanding checks, 5/31/04 4,900
Note collected by bank in May 1,250

The correct balance of cash at May 31, 2004 is
a. $32,400.
b. $26,250.
c. $27,500.
d. $28,750.

Solution Preview

Balance per bank $27,000
Add: deposit in transit 5,400
Less: outstanding check ...

Solution Summary

The solution presents the bank reconcilation for Dogg Co. plus information to explain the treatment of the note collected by the bank in May.