Question - On September 3D, Hall Company's Cash account had a balance of $31.970. On that date, the bank statement had a balance of $25,920. Analysis of the bank statement and comparison of the statement with the records indicated the following:
- Deposits in transit at the end of September - $ 13,439
- Outstanding checks at the end of September - 5,210
- Bank service charge - 11
- Customer's returned check, NSF - 1,470
- Bank collection of note on our behalf - 4,780
- Interest income on note - 230
In reviewing the records, Hall Company also discovered the following error: A Morgan Company check of $1,350 was deducted from Hall Company's account.
Required: Prepare the journal entries necessary to update the Cash account so that its balance is equal to the adjusted balance per bank reconciliation. Make sure to enter the day for each separate transaction.