Question - On May 31, 2011, Interactive Company had a cash balance per books of $5681.50 . The bank statement from Community Bank on the date showed a balance of $7784.60 . A comparison of the statement with the cash account the following facts:
a) The statement included a debit memo of $60 for the printing of additional company checks
b) Cash sales of $863.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made $846.15 . The bank credited Interactive Company for the correct amount
c) Outstanding checks at May 31 totaled $1276.25, and deposits in transit were $836.15
d) on May 18 the company issued check No.1181 for $685 to M. Helms, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Interactive Company for $658
e) A $3000 note receivable was collected by the bank for Interactive Company on May 31 plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note
f) Included with the cancelled checks was a check issued by Teller Company to P.Jonet for $600 that was incorrectly charged to Interactive Company by the bank
g) On May 31, the bank statement showed an NSF charge of $700 for a check issued by W.Hoad, a customer, to Interactive Company on account
Instruction:
1) Prepare the bank reconciliation as of May 31, 2011?
2) Prepare the necessary adjusting entries at May 31, 2011?