(TCO 5) The bank account as a
control device that helps to protect cash. One of the requirements is to
conduct periodic bank statement reconciliations. Using the following data,
complete the bank statement reconciliation for Acorn Plumbing, Inc. (Use the
format shown on page 255 of your textbook) (25 points)
·The bank statement indicated a service charge of $56.
·Acorn made a deposit on May 31, but this deposit did not
appear on the bank statement, $1,451.
·A credit memo in the bank statement indicated a bank collection
of a note for $1,300 with interest received of $16. This item was dated May
18.
·Also included in the bank statement was a debit memo for a
NSF check for $314 from Barney Smythe.
·Checks #1406 for $1,342, #1610 for $1,609, and #1825 for
$857 were written by Acorn and sent to the respective companies, but these
checks do not appear on the bank statement.
·The balance on the bank statement as of May 31 was
$13,119.
·The Cash account on Acornâs books showed an amount of
$9,816.
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