The Seattle First Company's bank statement for the month of September indicated a balance of ($ 13,375).
Question:
The Seattle First Company's bank statement for the month of September indicated a balance of \(\$ 13,375\). The company's cash account in the general ledger showed a balance of \(\$ 10,030\) on September 30. Other relevant information includes the following:
1. Deposits in transit on September 30 total \(\$ 9,850\).
2. The bank statement shows a debit memorandum for a \(\$ 95\) check printing charge.
3. Check number 238 payable to Simon Company was recorded in the accounting records for \(\$ 496\) and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a \(\$ 72\) credit balance and the check to them should have been \(\$ 568\).
4. Outstanding checks as of September 30 totaled \(\$ 11,600\).
5. Check No. 276 was correctly written and paid by the bank for \(\$ 574\). The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for \(\$ 754\).
6. The bank returned an NSF check in the amount of \(\$ 1,110\).
7. The bank included a credit memorandum for \(\$ 2,620\) representing a collection of a customer's note. The principal portion was \(\$ 2,400\) and the interest portion was \(\$ 220\). The interest had not been accrued.
Required
a. Prepare the September bank reconciliation for Seattle First Company.
b. Prepare any necessary adjusting entries.
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