Question - Bank reconciliation and entries
The cash account for Interactive Systems at February 28, 2010, indicated a balance of $8,058. The bank statement indicated a balance of $14,801 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 $5,157.
2. A deposit of $4,754, representing receipts of February 28, had been made too late to appear on the bank statement.
3. The bank had collected $5,480 on a note left for collection. The face of the note was $5,200.
4. A check for $160 returned with the statement had been incorrectly recorded by Interactive Systems as $610. 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 $832 had been incorrectly charged by the bank as $382.
6. Bank service charges for February amounted to $40.
Require -
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.