Wright Company's cash account shows a $28,900 debit balance and its bank statement shows $27,200 on deposit at the close of business on May 31. The May 31 bank statement lists $170 in bank service charges; the company has not yet recorded the cost of these services.Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, 2013, its Cash account shows a $28,900 debit balance. The company’s May 31 bank statement shows $27,200 on deposit in the bank.a. The May 31 bank statement included a $170 debit memorandum for bank services; the company has not yet recorded the cost of these services.b. Outstanding checks as of May 31 total $6,300.c. May 31 cash receipts of $6,900 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement.d. In reviewing the bank statement, a $470 check written by Smith Company was mistakenly drawn against Wright’s account.e. A debit memorandum for $460 refers to a $460 NSF check from a customer; the company has not yet recorded this NSF check.Prepare a bank reconciliation for the company using the above information.

Explanation: A bank Reconciliation statement is one that shows a record ensuring a company's bank financial records corresponds with its financial book records and adjust any discrepancies found.

Bank reconciliation for the Wright company as of May 31st

Ending balance according to Bank statement $27,200

Add:

Deposit made $6,900

Bank error $470

$34,570

Deduct:

Outstanding checks ($6,300)

Adjusted bank balance $28,270

Ending balance according to Book statement $28,900

Add:

Deduct:

Bank Service Charge ($170)

NSF check ($460)

Adjusted book balance $28,270