The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items: 1. Cash sales of $742 were erroneously recorded in the cash receipts journal as $724. 2. Deposits in transit not recorded by bank, $425. 3. Bank debit memo for service charges, $35. 4. Bank credit memo for note collected by bank, $2,475 including $75 interest. 5. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer. 6. Checks outstanding, $1,860.
The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items: 1. Cash sales of $742 were erroneously recorded in the cash receipts journal as $724. 2. Deposits in transit not recorded by bank, $425. 3. Bank debit memo for service charges, $35. 4. Bank credit memo for note collected by bank, $2,475 including $75 interest. 5. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer. 6. Checks outstanding, $1,860.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 3E
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Transcribed Image Text:The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the
cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items:
1. Cash sales of $742 were erroneously recorded in the cash receipts journal as $724.
2. Deposits in transit not recorded by bank, $425.
3. Bank debit memo for service charges, $35.
4. Bank credit memo for note collected by bank, $2,475 including $75 interest.
5. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer.
6. Checks outstanding, $1,860.
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