Bank Reconciliation and Entries
The cash account for Online Medical Co. at June 30, 2014, indicated a balance of $14,500. The bank statement indicated a balance of $16,820 on June 30, 2014. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $6,060.
b. A deposit of $6,310, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank had collected $3,280 on a note left for collection. The face of the note was $3,110.
d. A check for $550 returned with the statement had been incorrectly recorded by Online Medical Co. as $500. The check was for the payment of an obligation to Hirsch Co. for the purchase on account.
e. A check drawn for $70 had been erroneously charged by the bank as $700.
f. Bank service charges for June amounted to $30.
1. Prepare a bank Reconciliation