Principles of Accounting I



The following data were accumulated for use in reconciling the bank account of Zek’s Co. for May 2016:
1. Cash balance according to the company’s records at May 31, 2016, $22,110.
2. Cash balance according to the bank statement at May 31, 2016, $29,650.
3. Checks outstanding, $13,875.
4. Deposit in transit, not recorded by bank, $6,770.
5. A check for $50 in payment of an account was erroneously recorded in the check register as $500.
6. Bank debit memo for service charges, $15.
A. Prepare a bank reconciliation, using the format shown in

Exhibit 13

. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word “Deduct:” or “Add:” will automatically appear if it is required.

B. If the balance sheet were prepared for Zek’s Co. on May 31, 2016, what amount should be reported for cash?
C. Must a bank reconciliation always balance (reconcile)?