Question - Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information:
a. The June 30 balance shown on the bank statement is $2,898.
b. Outstanding checks at June 30 totaled $165.
c. A deposit of $212 made on June 30 was not included in the balance shown on the bank statement
d. The bank statement contained an adjustment of $205 for a note receivable collected by the bank on behalf of Show Me, Inc. ($191 principal and $14 interest).
e. A bank charge of $17 was made to the account during June. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
f. The bank erroneously charged a $170 check of Shirt Inc., against the Show M, Inc., bank account.
g. The June 30 balance in the general ledger Cash account, before reconciliation, is $3,013.
h. The bank statement included a notice that a customer's check for $86 that had been deposited on June 14 had been returned NSF.
Required:
1. Prepare the bank reconciliation for Show Me, Inc., as of June 30.
2. Prepare the appropriate adjusting entry(ies) or show the reconciling items in a horizontal model, for Shoe Me, Inc., related to the bank reconciliation.