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The cash account for Interactive Systems at February 28, 2010, indicated a balance of $7,635. The bank statement indicated a balance of $13,333 on February 28, 2010. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
1. Checks outstanding totaled $4,118.
2. A deposit of $4,500, representing receipts of February 28, had been made too late to appear on the bank statement.
3. The bank had collected $5,200 on a note left for collection. The face of the note was $5,000.
4. A check for $290 returned with the statement had been incorrectly recorded by Interactive Systems as $920. The check was for the payment of an obligation to Busser Co. for the purchase of office supplies on account.
5. A check drawn for $415 had been incorrectly charged by the bank as $145.
6. Bank service charges for February amounted to $20.
1. Prepare a bank reconciliation.
2. Journalize the necessary entries. The accounts have not been closed. If a box does not require an entry, leave it blank.