Question - The cash account for Bonita Medical Co at September 30, 2008, indicated a balance of $5335.30. The bank statement indicated a balance of $5604.60 on September 30, 2008. Comparing the bank statement and the accompanying canceled checks and memoranda with the records revealed the following reconcile items:
a. Checks outstanding totaled 4790.45
b. A deposit of 9226.15, representing receipts of Sep 30, had been too late to appear on the bank statement.
c. The bank collected 7725.00 on a note left for collection. The face of the note was 7500.00
d. A check for 4315 returned with the statement had been incorrectly recorded by Bonita Medical Co, as 3415. The check was for the payment of an obligation to Rowe Co for the purchase of office equipment on account.
e. A check drawn for 230.00 had been erroneously charged by the bank as 2300.00
f. Bank service changes for September amounted to 50.00
Required -
1. Prepare a bank reconciliation
2. Journalize the necessary entries. The accounts have not been closed.