Questions: 1. The statement included a debit memo of 65.00 for the printing of additional company checks. 2. Cash sales of 908.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for 958.15. The bank credited Oriole Company for the correct amount. 3. Outstanding checks at May 31 totaled 267.25, and deposits in transit were 1,905.15. 4. On May 18, the company issued check No. 1181 for 686.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Oriole Company for 668.00. 5. 2,840.00 was collected from a customer's note receivable by the bank for Oriole Company on May 31 through electronic funds transfer. 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for 335.00 that was incorrectly charged to Oriole Company by the bank. 7. On May 31, the bank statement showed an NSF charge of 505.00 for a check issued by Sara Ballard, a customer, to Oriole Company on account. Prepare the bank reconciliation at May 31, 2025. (List items that increase balance as per bank books first. Round answers to 2 decimal places, e.g. 5,275.50.)

Solution Steps

To solve the problem of preparing a bank reconciliation, we need to follow these high-level steps:

1. Start with the Bank Statement Balance: Begin with the balance as per the bank statement.
2. Adjust for Outstanding Checks: Subtract any checks that have been issued but not yet cleared by the bank.
3. Adjust for Deposits in Transit: Add any deposits that have been made but not yet recorded by the bank.
4. Correct Bank Errors: Adjust for any errors made by the bank, such as incorrect charges or credits.
5. Start with the Book Balance: Begin with the balance as per the company's books.
6. Adjust for Bank Charges and Credits: Subtract any bank charges or add any credits that have not yet been recorded in the company's books.
7. Correct Book Errors: Adjust for any errors made in the company's books, such as incorrect journal entries.

We start with the following initial balances:

• Bank statement balance: \( \frac{1}{7} \)
• Book balance: \( 0.0 \)

We subtract the total outstanding checks from the bank statement balance: \[ \text{Adjusted Bank Balance} = \frac{1}{7} - 267.25 \]

Next, we add the deposits in transit to the adjusted bank balance: \[ \text{Adjusted Bank Balance} = \text{Adjusted Bank Balance} + 1905.15 \]

We also need to adjust for the bank error, which was an incorrect charge to Oriole Company: \[ \text{Adjusted Bank Balance} = \text{Adjusted Bank Balance} + 335.0 \]

For the book balance, we start with the initial book balance and make the following adjustments:

1. Subtract the debit memo for printing checks: \( -65.00 \)
2. Add the amount collected from a customer's note receivable: \( +2840.00 \)
3. Subtract the NSF charge: \( -505.00 \)
4. Adjust for the book error: \( +18.0 \)

Thus, the adjusted book balance is calculated as: \[ \text{Adjusted Book Balance} = 0.0 - 65.00 + 2840.00 - 505.00 + 18.0 \]

Final Answer